Assessing the U.S. Equity Market Correction

Markets have experienced a 10% correction. What are the causes and how should investors react?

Drawdowns of 10%+ are relatively common, occurring on average every 1-2 years amid shifting expectations and risks.
Market weakness appears localized to the U.S., with international equities providing a diversification benefit.
The decline appears tied to uncertainty among businesses and consumers amid recent dramatic policy shifts.
Economic growth expectations for the first half of 2025 have been revised lower, but recession is not the base case.
The uncertainty-driven correction provides an opportunity to rebalance to long-term policies, adding to equities at lower prices.