Chris Whalen Says the One Trade Everyone Made Is Now Unwinding

Chris Whalen of Whalen Global Advisors frames this whole selloff in one line: long AI and short bonds was the set-it-and-forget-it pair trade everyone ran all year, and now it's unwinding in reverse. He shows how the AI buildout, financed with debt off the balance sheet, quietly pushed long-term rates up. The twist: with the 10-year above 5%, bonds now correlate positively with stocks, so the old 60/40 hedge isn't working, and he tells his mortgage crowd to get used to 7% mortgages. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Two reasons markets go down 00:35 A crowded trade that narrowed 01:30 AI debt you can't see on the balance sheet 02:40 The Fed is on the sidelines 03:40 The market is getting narrower 04:30 The Beige Book, data centers and defense 05:40 Long AI, short bonds, now in reverse 06:40 Why bonds stopped hedging stocks 07:40 Get used to 7% mortgages 08:40 The gold and dollar read #tastylive #tradingtrends #chriswhalen #bonds #interestrates #aibuildout #6040 #mortgages #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.