Executive Summary: The narrative pivoted abruptly from inflation to growth. The end of the record-long 43-day federal government shutdown was met with a sharp, risk-off repricing. 800-point drop in the Dow.
Market conditions are evolving rapidly. Key developments include:
Based on the current volatility profile, we recommend a defensive posture. The risk-reward skew has shifted unfavorably for long-duration assets. Capital preservation is paramount in this regime.