The reasons for investors to be pessimistic are beginning to pile up just as quickly as the market has been sliding down.
A once-pristine fundamental backdrop suddenly looks tarnished, as worries accelerate that economic growth may have peaked, political headwinds are forming, and rising interest rates will stand in the way of future fiscal stimulus from the Trump administration.
While stocks had been staging a mild relief rebound in November, Monday's sharp decline shows that the market remains temperamental. All it took was a negative headline for Apple about iPhone demand and news about a lingering regulatory issue for Goldman Sachs to send Wall Street into another tailspin.
The market's vulnerability has become a common theme among market pros warning their clients not to take too much risk in the current climate.
"Ongoing risks keep us cautious and we continue to recommend that investors pare back risk if their equity holdings are above longer-term strategic allocations," senior strategists at Charles Schwab warned clients in a report Monday. "Economic and earnings growth rates may be peaking, while the labor market continues to tighten. This mix contributes to higher wage growth, possibly higher inflation and related uncertainty with regard to Fed policy."
Those are but some of the risks on invevstors' minds these days.