How the Global Carry Trade Impacts Market Selloff (youtube.com)
Divergence between rates is rising. Carry trade seemed to be the easy trade, now unwinding. ‘I don’t think it's gonna go (down) that far, but maybe I better get out.' Embedded leverage in the market, and no one knows how far that leverage goes.
Some pointed out that Buffet said that investing in the market redistributes capital to the patient.
‘Fear does no good.’ Claudia Sahm ... ‘Panick is never a good strategy.’ Victoria Greene
If you get people panicked in the real economy, you can have a quicker slowdown.
Tech balance sheets are strong. Lots of spending went into AI.
Both Tom Lee and Brian Belski have mentioned Small- and Mid-caps as being positioned for 10 years. The next 3-5 years benefit US and North American companies, said Belski.