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Unusual Whales Pod #11: 2.6% GDP, the American economy at large, and risks in the Treasury market

Unusual Whales

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Are We Really Too Bearish?

The last time we saw a meaningful rotation was the internet bubble of the late 90s into the hard asset rally that roughly began in 2003. And perhaps what we're seeing today is a similar dynamic taking place where capital discipline is now being implemented in the market. If you're unprofitable, if you're losing cash, that business model of maximizing your market share isn't going to work in this cycle. That's the case then one could see maybe not so much a bearish outlook but more sort of a flat, gyrating rotation in the market which could sustain market advances.

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