Trump's economic philosophy gains relevance amid stagflation risks. His protectionist, energy-independent "America-first" approach appears prescient as Middle East tensions push oil above $109, validating economic sovereignty during external shocks 3.
Stagflation has materialized from theoretical risk. Energy price shocks, persistent inflation, and slowing activity create textbook conditions mirroring 1971-1973 and 1979-1981 oil crises 324. This environment favors defensive assets while punishing equities.
The S&P 500 (SPY at $653.18) faces technical support versus fundamental deterioration. Testing critical $655.32 support with 25% short volume, capital outflows (-$166.58M), and stagflation risks suggest technical bounces may be temporary. The market needs sustained recovery above $670 resistance amid persistent inflation and slowing growth.
Nasdaq Enters Technical Correction: Reduce or Add Positions?
Compared to its all-time high on October 29, 2025, the Nasdaq has now declined by more than 10%, officially entering a technical correction zone.
In addition, all of the Magnificent 7 are currently experiencing double-digit drawdowns.
Some market participants believe it’s best to move to cash and wait for a deeper pullback.
How do you view the Nasdaq entering a technical correction?
Would you reduce your positions at this stage?
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