Commentary
A correction in equity markets tends to generate an immediate negative reaction from citizens, citing political headlines about tariffs and trade as the reasons for equity volatility. However, if the market were scared about the U.S. economy, German and Japanese sovereign bonds would not have declined. Furthermore, as of the writing of this article, 493 stocks in the S&P 500 are flat in the first quarter despite having reached all-time highs in 2024 and despite all the negative headlines of 2025. The Bloomberg US Large Cap Index, excluding the Magnificent Seven, is flat year-to-date.
