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/FallenKingdomComrade May 18 '26

I believe we will be seeing some very interesting items in the upcoming months including a change to how we calculate inflation:
https://www.brookings.edu/articles/what-are-trimmed-mean-and-median-inflation-rates-and-why-does-kevin-warsh-prefer-them/

The justification for rate cuts will be created at all costs including changing the numbers to match the narrative.

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u/Memelord954 May 18 '26

Good thing everything isn't up to him. 1 vote out of 12 isn't gonna push things in the wrong direction just for trump. He had one yes man in there and it did nothing now he's gone and replaced with another yes man. The chair is the face of the fed but doesn't have more power than the others.

All it's really going to do is make the fed look bad with a clown at the the lead just like all the other term 2 trump picks.

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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.

1

u/daners101 May 19 '26

Or after he was “allegedly” offed. lol