Markets continue to stabilize, but the character of the move remains measured rather than confident. The earlier stress phase has clearly faded, yet the absence of a strong macro catalyst is preventing a transition into a broad risk-on cycle.
Core View:
This is a late-stage stabilization environment, not an early bull market.
The macro backdrop is still defined by:
- Restrictive financial conditions
- Inflation that is moderating slowly, not decisively
- Liquidity that is available, but selective in deployment
➡️ Markets are functioning well, but not expanding aggressively.