Market Outlook - The market is currently in a CapEx bubble, expected to burst naturally at some point [1] - The current selloff is considered mild, with potential for further continuation [2] - Expectation of a more volatile stage in the market, possibly entering now [3] - The cycle is quicker and less volatile compared to the dotcom bubble [3] Dollar and US Assets - The dollar is expected to strengthen into year-end, but not parabolically [5][9] - Potential upside for yields amid uncertainty about the Fed's next move [5][6] - Extreme risk aversion could lead to a short-term dollar boost from deleveraging [7] - US stock market bounce will support the dollar due to inflows [8] Bond and Equity Market Dynamics - Equity traders are currently leading fixed income traders in this cycle [10][11] - Equity traders believe the bubble hasn't burst yet, so stocks lead fixed income for now [11]
Volatility Doesn't Mean Bubble Bursting: 3-Minutes MLIV
Bloomberg Television·2025-11-04 10:00