Everyone Loving Bonds Right Now. Why?!: 3-Minutes MLIV

• Conflicting signals: Bonds are trading 'tremendously well' (implying negative growth/rate cuts), while stocks are trading positively, creating confusion.
• Short-term outlook for stocks is 'fragile', with a bias towards a 'washout' in momentum trades, meme stocks, crypto, precious metals, and some tech names.
• Long-term structural view for 2026 remains positive/bullish, but immediate price action is a concern.
• The diversification/value rotation trade (away from US tech to other regions/value) makes fundamental sense but might be overextended.

Mark Cudmore expresses confusion over current market price action, noting a divergence between strong bond performance (implying negative growth) and positive stock trading. He highlights a short-term bearish bias for momentum and tech stocks, expecting a potential 'washout' despite a longer-term positive structural view for 2026. The rotation trade towards value and ex-US markets is fundamentally sound but may have gone too far.