The Five
These moves occurred alongside a violent reversal in investor sentiment. This includes the largest one-week decline in bearish sentiment (from 50.3% to 27.2%) in the history of the American Association of Individual Investors (“AAII”) weekly survey (from AAII)…
And a return to “Greed” territory in CNN’s Fear & Greed Index after a brief dip into “Extreme Fear” last month (from CNN Business)…
… as well as rising “term premium” – a measure of the added compensation investors demand for holding longer-duration debt – as a result of out-of-control government deficits (from Jurrien Timmer via X)…
This suggests the upward pressure on long-term yields could remain even if the Fed cuts short-term rates.
