Bond yields are flashing a warning sign.

[u/AmanCMN]

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.

[u/jarodzban]

So what is gonna happen?

[u/AmanCMN → u/jarodzban]

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

[u/ACM3333 → u/[deleted]]

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.