It can take months or years before the market enters a correction. It can also happen in a moment. A market top cannot conceal some of the market weaknesses in debt and demand (in the American economy). Consider building a portfolio that benefits from a bull, bear or baboon run.

The S&P 500 is not a representation of the American economy. Over 70% of global funds invested in equities are poured into the American market. The S&P 500 has a global presence, and its earnings represent revenue of these global businesses, not the American economy. It is simply the “preferred” marketplace for many investors, especially those outside of America. Yet, I have started rebalancing my portfolio, exiting some US positions.

Corrections are a normal part of any typical market cycle. These should be welcomed as they present good opportunities for “wealth transfer”. There are concerning signs of weakening commercial real estate (CRE), devaluation of USD, the (quiet) printing of USD, debt (federal, corporate and consumer), growing supply of real estate, tariffs, geopolitical tensions, wars and natural disasters.

With USD falling 10% in 2025 alone, non-American investors have suffered forex losses. Without a profit margin of 15% (or more, depending on the fees and platforms used), investors could not break even with a 10% on USD-denominated assets. This is something that we need to consider, as other factors like inflation complicate the returns.
Let us review our expenditures, income, and savings. Let us spend within our means, invest with what we can afford to lose, and avoid leverage. I am reviewing my holdings and plan to cut losses with businesses losing their competitive advantages. I would also consider hedging and adding some defensive positions.
Let us do our due diligence before we take up any positions. Let us have a successful week ahead.

(An extract from one of my posts https://ttm.financial/post/451247649419568)

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$Cboe Volatility Index(VIX)$