I do not want to scare everyone with my side of story, I stay away from discussions, esp from fear of making a wrong statement. My statement validity is 50% right and 50% wrong (it means worthless), viewers do your own research.
Last two recessions (2000 and 2008) were made by FED rate hikes aggressively. Thereafter FED started rate hike now, but slowly as they do not want a recession, but a correction to keep the economy stable.
My first assumption is that whenever FED hikes the rate, the economy will fall after the end of last rate hike (as happened last two times). This time FED has clearly said 3 rate hikes in 2018 and 2 more in 2019.
The simple principle: USA is credit economy. Any credit getting hardened, it affects credit based companies. Rate hike means bottom line/profit margin hit. In order to recover, companies will go for cost cutting, including jobshed.
Rate hike introduces the above cycle and market sees it at some point later.
Getting down 1175+,1100+, 750 up or down are abnormal, but those are made by big financial institutions, but not from common people like you and me. Big financial institutions rigorously go through analysis and decide. It needs trillions to trade down, not possible by small individuals
It must be well planned action. When this comes, repeatedly and subsequent fall after rate hikes, this gives me idea of volatility and Big financial institutions preempt common investors like me.
Then the theory of yield curve flattening. This time, markets are sagging with flattening, looks like prelude for big changes.
Many cash rich companies use this opportunity to buyback shares. Now, all companies getting the offshore cash and keeping it ready to buy at DIP with tax cut initiatives.
All I am doing is the same, getting them in cash, wait at sidelines for good opportunity.