Key points:

• Big selloffs often reflect market mechanics, not broken long-term theses: Sharp drops in any crowded, liquid area (equities, tech, commodities) can spill into other assets via de-risking, liquidity selling, and USD/rates repricing— without changing the long-term fundamentals.
• Diversification doesn’t mean zero volatility: In stress, correlations rise and even “defensive” holdings can wobble. If volatility forces decisions, the issue is usually sizing and process, not whether you picked the “wrong” asset class.
• The biggest risk is turning short-term volatility into a permanent decision: Successful long-term investors rebalance exposure, not emotions. A bad week tests discipline – it doesn’t require perfect timing…