The 10-year yield is RIPPING this morning.
Up another +7 basis points. It was up +3, then it was up +5, and now it’s up +7 bps. Well, why doesn’t it go up more?
It should go up +10 basis points, because the top end of the Risk Range is +1.44% dear Jedis. And you all knew that.
So at the end of the day, risk happens slowly, and then all at once in the bond market.
All the people that didn’t call this are now going to say, “Oh now that’s the reason the end of the world is coming.”
You buy the Financials (XLF), you buy Energy (XLE), you buy High-Beta; you understand what to do with this.
Obviously if you’re long Gold (GLD), Treasuries (TLT), Utilities (XLU) you’re going to have a major headache. And that’s because you’re not listening.
Or you’re a new subscriber, and you’re tired of listening to Ye Old Wall and CNBC. I don’t blame you for subscribing to us, that’s a great decision from a life perspective, never mind a net wealth perspective.
Again, we’re here to preserve and protect for people; we want to compound returns on top of saving money.