The phrase "Sell America†stormed into the headlines earlier this year. It seemed as if global investors were finally turning their backs on US markets for good. ...

It turns out that all the “Sell America” angst swirling in markets earlier this year was misplaced. The real mantra from global investors is more like “Hedge America” https://t.co/MPNarYahBA ...

Market Volatility & Trends - August 5th is statistically the most volatile day for U S stocks based on the average move in the VIX since 1990, but the current August shows calmness [1] - Summer markets typically drift higher but are prone to sudden sell-offs, sometimes due to inexplicable moves [3] - Positive price action at the beginning of the week should be viewed with caution due to lower trading volumes, with S&P 500 volumes being approximately 23% below the 22-day average [4] Catalysts & Concerns - Tariffs remain a slow-moving catalyst with potential for negativity [5] - The market is awaiting CPI data next week, anticipating a positive drift this week [6] - Concerns exist regarding material damage from last Friday's data and Trump's actions against bailout measures [6] Investment Strategy & Outlook - The speaker remains long-term bullish on global equities due to abundant liquidity worldwide, including increasing liquidity from China [7] - US stocks are expected to continue to underperform, a trend observed since the end of January [7] - There is a short-term window for a "Sell America" narrative in August due to shifting growth narratives, particularly negative for the US [8][9]

Market Reaction & Sentiment - The market experienced a chaotic 90 minutes of trading, characterized by a "sell America" theme across asset classes [1][2] - The dollar weakened, the equity market declined, and the back end of the Treasury market sold off aggressively [2] - The market priced in an additional rate cut for the remainder of the year [2] - Betting market odds of Trump dismissing Powell by the end of the year surged to nearly 40%, but later returned to previous levels [5] Potential Scenarios & Uncertainty - The market is questioning Jerome Powell's potential dismissal and the subsequent implications [2][3] - Scenarios include Powell's potential actions, the vice chair stepping in, and potential resignations from the Fed board [3] - The confirmation process of Trump's new pick by the Senate is uncertain, especially considering the summer recess [4] - A Supreme Court decision could potentially reverse Trump's authority to remove Powell from his position [4]