Tesla and other high-P/E stocks offer a hint of what's coming to the broader market when wave 3-of-3 of the sell-off in Treasurues kicks in. The market completely unaccounts for the chaos that will result from the 10Y yield jumping from 1.5% today to 3% or higher. I see this happen in the next month or so, and this will take everyone by surprise.
It's not just Tesla that will go down -- the rest of the market will have to reprice itself to the new high-yield reality. Hundreds of trillions of dollars of liquidity from worldwide stocks and debt of every type will be pushed into the dollar in a matter of weeks causing the never seen before short squeeze in DXY which has already begun.
It's not just Tesla that will go down -- the rest of the market will have to reprice itself to the new high-yield reality. Hundreds of trillions of dollars of liquidity from worldwide stocks and debt of every type will be pushed into the dollar in a matter of weeks causing the never seen before short squeeze in DXY which has already begun.
