First, -10% correction happens every two years or so. It is not surprising. However the speed of this decline were fast and furious. I bet lots of reailers are already out of this market at the moment (giving 4 weeks of AAII bullish sentiment at 20%).
The reason might be because seasonality plus tarriff.
Where we are now:
1. Seasonality:
2. Sentiment
3. Statistics
4. Hedge funds positions (Extremely bearish)
My conclusion: The worst sell offs might be over. But the market will remain choppy. Use the opportunity to assess your risk tolerance.
