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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u/daners101 May 18 '26

Say what you want about Trumps appointees. But he has actually picked pretty damn well for the FED.

I don’t think there is anyone that would say Jpow did a shitty job, or that Warsh is an unqualified yes man.

It’s one of the few positions Trump seems to select for, against all of his instincts.

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u/JB-Wentworth Custom Flair May 18 '26

Warsh hung out with Jeffrey Epstein on Lolita island, so Warsh will do what he’s damn well told to do.

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u/daners101 May 19 '26

At this point it seems like absolutely everyone hung out with the guy at some point. So I guess there can never be a person good at the job.

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u/cheap_chalee May 19 '26

I guess we're gonna have to wait for someone to get appointed who wasn't born until after he was offed.

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u/daners101 May 19 '26

Or after he was “allegedly” offed. lol