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Otavio (Tavi) Costa observed that the dollar's muted response was the most important aspect of today's market action.
Costa, a portfolio manager at Crescat Capital, questioned the notion that every market selloff leads to increased demand for the U.S. dollar, suggesting that apart from Treasuries, the dollar would normally receive significant buying interest in such situations.
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Costa recently identified silver's price lag as a key divergence while copper continued to outperform in the metals market, according to a recent commentary. He also has described gold miners as the cheapest sector among U.S. equities, citing a free cash flow yield near 10% in a separate analysis. These market observations add context to his latest remarks on dollar demand during selloffs.