S&P correction could happen if GDP or earnings growth slows, says asset manager [Video]

In an environment of high valuations, one of two “catalysts” could cause a market correction.

That’s according to Brian Arcese, portfolio manager of the Singapore-based Foord Asset Management, who said markets have been “expensive for quite a while” — the S&P 500 is up about 23% in the year to date. It has a price-to-earnings ratio above 27, and some have described it as expensive by almost every measure.

“We do think that a correction would be healthy, but you will need some type of catalyst for that correction to take place. I think it could be one of two things,” he told CNBC’s “Squawk Box Asia” this week.

“We are seeing economic growth in the U.S. slow. [It is] still quite healthy, but it is slow, right? That can be a catalyst,” he said. U.S. GDP grew less than expected…