The Basics of Bond Yields Here's the thing – when people talk about the 10-year rate, they're talking about what the government has to pay to borrow money for 10 years. Think of it like this: if you're lending money to your most reliable friend (in this case, Uncle Sam), what return would you want on your money? Let me break this down with real numbers, because this is important. Right now, that 10-year yield is sitting south of 4.5%. That means if you put $100,000 into these bonds, you're guaranteed to get close to $4,500 a year. Guaranteed. What This Means for Your Money Here's where the rubber meets the road. The Fed can cut rates all they want, but if the 10-year yield keeps climbing, we're going to see some serious portfolio shuffling. Growth stocks, especially tech stocks that promise profits way out in the future? They get hit the hardest. That's why Bessent is focused on the bringing down the 10-year yield. YOUR ACTION PLAN As Donald Trump continues to install his policies in 2025, it's worth paying attention to the 10-year yield going forward. Overall, it will be the most important indicator for the health of the economy. But how do you trade based around this key indicator? First, start with diversification. Which is exactly what we show traders how to do in The War Room. Higher yields mean better entry points. Also focusing on higher quality dividend stocks since they tend to weather any storms better. To get all our trades that fit this criteria and strengthen your portfolio, I invite you to join us in The War Room today. Click here to learn more. |
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