We went from a rules-based economy to throwing Molotov cocktails. We will wind up in another stable system where each country is more responsible for its own efforts. The transition is painful.

In AI, avoid companies that don't rely on people, property, or equipment and have high margins. Those are easy to disrupt. Companies producing tangible goods or services will do well and may see margin increases.

There is a lack of liquidity. When a trade accelerates, there's no depth—no one steps in to pick up the middle. This creates stop-loss cascades exacerbated by leveraged ETFs and zero-day options.

Geopolitics is the biggest driver. What we're doing with China affects outcomes. Tariffs are now cumulative ($250B over 7-8 months) and are being passed through, affecting costs and delinquencies.

This is a positioning unwind, not a fundamental story. People got comfortable treating stocks like cash and are now less confident that we have to go higher. It's US selling.