WTF IS A MARKET DISLOCATION?

Summary from the TLDR Founders newsletter

Market dislocations happen when prices stop making sense—when asset values disconnect from fundamentals due to economic shocks, policy surprises, or investor psychology. Unlike recessions, dislocations signal that the market's pricing mechanism is temporarily broken. Think of it like driving on black ice: the car spins unexpectedly, but may keep moving down the road afterward. We're seeing this now in bond yields and equity volatility. While not a crisis, these moments require extra vigilance—watching metrics closely, maintaining liquidity, and being prepared for unexpected shifts.