Big Picture Is Very Bullish Still: 3-Minutes MLIV

Mark Cudmore sees a short-term bid for bonds after the recent selloff, while maintaining a structural view for higher long-end yields. He remains broadly bullish on equities, arguing big-picture fundamentals and liquidity are still supportive, though thin holiday liquidity may cause near-term equity weakness. Credit markets are absorbing heavy issuance for now, but longer-term crowding out is a risk. - Mark Cudmore says the bond selloff has gone far enough for a short-term bounce. - He maintains a structural call for much higher long-end yields later this year or next year. - He sees no reason to be bearish on stocks, citing AI capex, earnings, fiscal support and easy financial conditions. - Near-term equity dip-buying may be slowed by holiday-thinned liquidity. - Heavy debt, equity and sovereign issuance is being absorbed for now. - Longer-term risks include credit-market crowding out and AI debt funding pressure on Treasuries.