Part 8/9:
Dro described a sort of "Trump put" on Treasury bonds that acts to stabilize prices and consequently manage interest rates. The interplay of tariffs and potential inflation complicates matters, leading to the market's interpretation that tariffs could create a more significant growth hindrance than inflationary pressures.
He suggested that while inflation risks exist, the overriding sentiment among market participants perceives growth concerns as more pressing. This perspective establishes a scenario where equities are less likely to experience substantial sell-offs unless major shifts in economic fundamentals occur.