To The Moon

A 10% decline in the Nasdaq is technically a correction, but not necessarily the start of a bear market. Historically, Nasdaq corrections happen quite often during bull markets, especially when valuations are high and interest rate expectations change.

The key question is not whether we are in a correction, but whether liquidity and earnings are deteriorating. Corrections driven by positioning and sentiment are very different from corrections driven by recession or earnings collapse.

How I view this correction

This correction looks more like:

High valuations being compressed

Interest rates staying higher for longer

Geopolitical and oil risks raising inflation expectations

Institutions reducing risk and rotating sectors

So this feels more like a macro-driven correction, not a tech collapse.

Move to cash?

Going fully to cash after a 10% drop is usually late.

Most of the time:

First 10% down = fear

Next phase = range and volatility

Final phase (if bear market) = earnings downgrade

We are probably still between phase 1 and phase 2, not full bear yet.

Would I reduce positions now?

I would not panic sell everything, but I would reduce risk and build cash gradually, not all at once.

A more balanced approach:

Trim weaker positions

Keep strongest companies

Build cash slowly

Prepare to buy if market drops another 10–15%

Avoid leverage

Simple framework

Think like this:

5% drop: ignore

10% drop: rebalance

15–20% drop: start buying more

25%+ drop: big opportunities

So at this stage, I would rebalance and raise some cash, but not exit the market completely.