StockChart's deKempenaer: Market's downside risk outweighs upside potential

Julius de Kempenaer, senior technical analyst at StockCharts says that the stock market at current levels is unattractive, because "the upside potential is now way more limited than the downside risk," and he expects that risk to be realized in a decline that could drop the market by another 5 percent or more. De Kempenaer says this dip won't feel much like a buying opportunity, because the market will need several months or quarters to finish a rotation and find a new base to build on. He notes that investors have been gravitating toward bonds, another sign that they are concerned about the market's ability to keep generating gains. Jordan Lopez, manager of the Payden High Income fund, says high-yield bonds have been improving in quality, despite the higher interest rates of the last few years, and he expects the trend to continue, to the point where the market for junk bonds now looks more like what investment-grade bonds used to be. Plus, Eric Purington, portfolio manager for the Aberdeen Global Income Infrastructure fund, discusses the potential of middle-market infrastructure plays, and MarketWatch columnist Brett Arends discusses his latest piece, which suggests that the Trump Administration needs a weaker dollar to make its plans work, and that a recession may be a required part of that calculus behind tariffs and inflation-fighting strategies.