Everyone is talking about the AI meltdown. Read enough of it and you would think the world is ending. I have seen this film before. Markets correct. Valuations get stretched. Investors panic. Suddenly everyone has a reason why it is about to get much worse.
At one point, the CBOE Volatility Index (the VIX Index) jumped, rising as much as 70% in intraday trading before settling down. This is not just politics. It is leverage. Forced sellers are dumping assets at any price and that osis when long-term investors should be paying attention.
The risks are real. There will be casualties. That is how markets work. There are plenty of rumours about funds blowing up. We will not know the full picture until the dust settles.
Caution and pessimism are not the same thing. One protects your capital. The other just ruins your weekend.
The world is not ending. Your portfolio might need adjusting depending on your risk profile.