its just a growth repricing exaggerated by passive investments, and sector valuation imbalances, as investors / traders all try to front run the fed view of monetary policy and the impact on bonds, with a small geo political influence in the ever tumultuous Middle East. The fed has shifted from inflation, now back within target range, excluding the bogus owners equivalent rent portion (30+%) of CPI, to employment and the economy, as parsed in J Powells recent statements and interviews. The fed is also known to be late in changing rates due to the inaccuracies of forecasting the economy, as they want hard data to validate their position. The market valuation does not matter to the fed as the market is not the economy, so stop blaming the fed whose changes influence the economy in 18-24 months.
Since GDPNow, labor employment and labor statistics, and corporate bond spreads are not weakening very quickly, but the leading indicators are showing the first signs of slowing, PMI, Sahm rule, mortgage rates, treasury interest rates versus fed rates, etc., investors are moving some money from stocks to bonds. .
Lastly, with machine learning (ML) everyone is starting to act on the same signals, as there are just a limited data set and potential signals. Very similar to chess, there is a bounded board of data but an unlimited number of good and bad moves. I am watching two / three independent ML money managers acting exactly the same way, same trades, etc. Couple that with passive vs active management, active sets prices on ever decreasing trading float, correction move rates are faster than the historical average for similar events.
Also, if you rollover 30% from an IRA/401K to Roth, it's always better to do this at the top of the market, than the bottom. .
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