The markets are connected, and the message is not good:
1. The Korean tech bubble is bursting, and some return to normality; however, it is not done yet. US retail investors are net sellers. We just saw a US fund blow-up with Situational Awareness. It is a one-off, but investors need to realize that investor euphoria led to the excessive money flows.
2. Coordinated intervention in the yen market to stop a massive currency slide. Japan rates moving higher, so global fixed income is being reset.
3. Long-term Treasuries at levels not seen since 2007. Real rates continue to move higher. Housing market declines will continue given high mortgage rates. Cost of borrowing for all AI projects is going higher.
4. Consumer sentiment continues to move lower.
5. Continued war in Ukraine and the Middle East, which impacts the oil market. Oil inventories are reaching low levels.
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