No, it doesn’t. “Correction territory” is not a term used by professionals, it is a stupid made-up TV journalism term. A correction is any movement of any size that is against the prevailing trend, but which does not establish a new trend. In an uptrend, a single downtick can be a corrective move. Or it can be the start of a downtrend. The size of the move does not tell you which it is.
So for those of you who want to demonstrate professionalism, let go of the silly “10% is a correction” theme. It does not serve you or anyone else well.
Anyone surprised??
“Pimco Warns a Wave of Defaults Is Coming for Low-Quality Borrowers”
“….Pimco’s Richard Clarida, Andrew Balls and Daniel Ivascyn said in the firm’s latest annual secular outlook report that “the default cycle is reasserting itself, and we expect significantly higher losses in lower-quality credit such as leveraged and private direct lending.”
Pimco, which manages $2.3 trillion in assets, said the AI buildout could widen the range of economic outcomes over the next five years while leaving weaker and more heavily leveraged borrowers exposed….”
U.S. Central Command forces began launching additional self-defense strikes today at 5:15 p.m. ET against multiple targets in Iran at the Commander in Chief’s direction. The strikes are in response to Iran’s unwarranted and continued aggression.
Higher dollar, structurally for now, with higher yields from higher energy costs - which drove 60% of the CPI gain in May - are all headwinds to equities.
Now imagine Japan and Europe with unhedged USD exposure... into USD assets that are now correcting. Would you stay?
$USDJPY $EURJPY
NEW: malware developers added nuclear & biological weapons text to to their spyware.
Goal? To trigger LLM safety refusals... so that their spyware wouldn't be analyzed by an AI security scanner.
Cleanest practical example I can think of for why over-indexing on first order safety alignment is risky.
When closed (and open) models ship with aggressive refusals, they will be sprinkled with second-order blindspots that attackers will discover...and exploit.
We are only in the earliest days of attackers leveraging these features, and it wouldn't surprise me if users systems that need to handle complex cybersecurity issues demand that models be less safety-blunted.
In the weeds: @SocketSecurity's post also shows why intention matters in how you design a malware analysis pipeline to avoid prompt manipulation.
H/T to colleagues that shared this with me https://t.co/f3Aj9TYxU4
Gold: I have to be blunt here. Anyone that thought a big correction was not about to happen, or that the correction was over a week or two ago, has literally no idea how to read the weight of evidence 👇
BREAKING: China bought +10 tonnes of gold in May, the largest monthly addition since January 2025.
This follows +8 tonnes acquired in April, marking their 3rd consecutive monthly net purchase.
China has now bought gold for 19 consecutive months, the longest streak since at least 2015, when its central bank began publishing more regular data on its gold reserves.
This brings China's official gold reserves to a record 2,331 tonnes, worth over 9% of their total FX reserves.
The country is also the 3rd-largest central bank buyer year-to-date, after Poland and Uzbekistan, with a total of +27 tonnes added.
China’s demand for gold is accelerating.
TRUMP FAMILY REPORTEDLY POCKETED $500 MILLION FROM CRYPTO VENTURE AS INVESTORS TOOK HEAVY HITS
TRUMP-LINKED CRYPTO PROJECT GENERATED $500 MILLION FOR FAMILY WHILE INVESTORS FACED SHARP LOSSES