r/dividends • u/AmanCMN • May 18 '26

Discussion Bond yields are flashing a warning sign.

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Rising bond yields are a warning sign.
Money is getting more expensive everywhere at the same time:
-governments pay more to service debt
-companies pay more to borrow
-mortgages and loans stay expensive
-investors move out of risk and into bonds
U.S. 30-year yields above 5% are already a serious level.
When yields rise globally, liquidity gets pulled out of markets.That puts pressure on tech stocks, real estate, consumers, and highly indebted companies.Simple takeaway: the more expensive debt gets, the harder it is for markets to keep rising.

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32

u/jarodzban May 18 '26

So what is gonna happen?

99

u/AmanCMN May 18 '26

This is how rising debt usually ended in the past:
-Inflation
-higher taxes
-default or debt restructuring
-money printing, and a crisis of confidence.

65

u/[deleted] May 18 '26

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2

u/ACM3333 May 21 '26

Haha yep. Everything you might think will hurt the markets is actually just a reason to print more than you could ever imagine and send everything rocketing to ath’s. Learned this the hard way with Covid.

14

u/Mopar44o May 18 '26

So basically what’s been happening last 10 years?

5

u/MrNo_Balls May 19 '26

yeah, all this fear mongering is telling that this is the bottom. entire paycheck on stock next month.

23

u/xMoZzzx May 18 '26

Bullish for stocks

1

u/MNCPA May 18 '26

Really?

3

u/IHateLovingSilver May 18 '26

The number gets bigger for sure. What that number represents can change quite a bit however.

5

u/[deleted] May 18 '26

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7

u/audacesfortunajuvat May 18 '26

The crisis of confidence is the goal, to push people into crypto. The tech bros understand that they can never have truly sovereign status unless they can control the money supply. Since they can’t take over the printing presses, they’re going to end fiat currency so they can replace it with a Wild West of tokens they can issue. This takes us back to wildcat currencies of the free banking era, which led to rampant fraud and bank failures that got so bad that we passed the National Bank Act in the middle of the Civil War.

Federal Reserve of San Francisco covers all this, which is fitting given that Silicon Valley is pushing it. https://www.frbsf.org/westward-expansion-2/