No. of Recommendations: 2
That assumes the tariffs are the underlying cause of the sell-off. I think more along the lines that they are simply the spark, with the underlying cause that stocks are unreasonably expensive, that thanks to that catalyst just happening what at some point has to happen.
Yup, I would agree with that.
SPY was up 25% in both 2024 and 2023.
The Magnificent 7 have been on a roar for the last couple of years. Even today after the recent huge selloffs, S&P500 Top 10 Holdings are 33.47% of Total Assets.
Technology Sector is 31.00%.
That's a lot of concentration in a few stocks, and people who had a large holding have a huge unrecognized gain. A bit of panic and everybody heads to the exits. Which drives down prices and feeds back onto itself.
