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The 10-year yield sets a 52-week high… a wedge pattern suggests a big move is coming… which way will it break?… a quick 140% winner from Jonathan Rose… Tom Yeung and Eric Fry and urging investors to avoid the hot AI trade
This morning, the 10-year Treasury yield hit a 52-week high – 4.6%.
That alone has important consequences for your portfolio, but there’s another angle on this that could be even more impactful.
First, to make sure we’re all on the same page, the 10-year Treasury yield is the most important number in the global economy. It sets the tone for borrowing costs – mortgages, business loans, and credit markets. It determines the discount rate investors use to value future earnings, meaning higher yields compress stock valuations. And it competes directly with stocks: when “risk-free” yields rise, money rotates out of equities.
