Part 2/7:
Market valuations have been described as "extremely stretched," prompting conversations around profit-taking. As the year draws to a close, there's a prevalent sentiment encouraging investors to lock in profits, step back for a brief respite, and return at the start of the new year. With this backdrop, the recent sharp movements in interest rates are reflective of a collective readiness among investors to respond to market cues, rather than a solidified belief in imminent Fed cuts.