This Isn’t a Crash – It’s the Valuation Reset We Needed
Stop settling for average
If today’s video resonated, the Insiders Club helps you apply the thinking shift — so you can focus on high probability opportunities and avoid distractions.
- Entry & exit recommendations across multiple portfolios (ASX & US)
- Market analysis & strategy
- Written trading alerts 5 days/wk
- 2 market & portfolio analysis videos/wk
- A 30-minute onboarding call included
- Ongoing email support as required
This week’s update at a glance
- Not the start of a crash: recent weakness is concentrated in the most expensive, crowded trades, not the whole market.
- Valuation reset in leaders: high PE technology and AI names are being re-priced after a powerful run. This is normal and healthy.
- Rotation under the surface: money is moving towards financials, energy, industrials and healthcare rather than heading entirely to cash.
- Preparation over panic: periods like this can improve entry points if you stay process-driven and manage risk.
What you’ll learn
- Why the recent sell-off looks more like a valuation reset than the start of a major bear market.
- How to read the money flows as funds rotate away from crowded tech and AI leaders.
- What recent price action is signalling about supply, demand and changing expectations.
- Practical steps to protect capital while positioning for opportunities that volatility may create.
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The thinking shift (in plain English)
Sharp moves in the leaders feel uncomfortable, but they don’t automatically mean the whole game has changed. The key shift is to view this kind of action as a re-pricing of expectations rather than a signal to abandon quality altogether. Your edge comes from focusing on repeatable, higher probability setups: sensible valuations, clear trends and risk you can define in advance.
What history shows (with important caveats)
Historically, markets have often gone through periods where stretched leadership is marked down while the broader earnings picture remains reasonable. These episodes can involve sharp swings and noisy headlines, but they are different to the kind of deterioration in earnings, liquidity and breadth that has usually accompanied major tops. That’s context, not certainty — selection and risk controls still matter, especially when sentiment is fragile.
Where I’m focused now
- Leadership & momentum: how key US indices and leading stocks behave after this shakeout, and whether buyers continue to step in on weakness.
- Breadth & rotation: whether money continues to move towards areas like financials, energy, industrials and healthcare, or whether weakness broadens out.
- Risk controls: trimming crowded trades where necessary, staging entries, sizing positions sensibly and using predefined exits so volatility works for you rather than against you.
Important information
Any advice in this video is general advice only. Neither your personal objectives, financial situation or needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Garry Davis (AR No:317590) is an authorised representative of Primary Securities Ltd (AFSL No. 224107).
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