Looking at the markets the last several sessions, it would be easy to think this was a “hold my beer” moment after we posited the question in our last blog post about what could take these booming markets out. Right now we are saying take a moment and a healthy step back, look at the charts over the last six, twelve or eighteen months, and decide how agitated to get. Could it get worse? Sure, always could. Is there a clear reason that it should? In our opinion, not really. It does seem like the AI theme is a little exhausted after a massive run, Japan is a little exhausted after a massive run (and the carry trade may be winding down), and the jobs numbers in the US may be a bit exhausted after a massive run. In other words, a healthy consolidation after better outcomes than world markets and economies had any reason to expect after the pandemic, an overshoot on stimulus, and the consequent slamming on policy brakes. If the Middle East erupts into a hot shooting war that pulls in the West, we will need to re-rate our risk view, but right now, keep calm and look at the charts.