πππLast Friday, the Nasdaq closed up 0.46%, pretending everything was fine while the US bond market was setting off fire alarms. The 10 year Treasury yield surged straight through 5.2%, shattering records not seen since the 2007 financial crash.
For a brief moment, Wall Street tried to call it confidence. Tech earnings are so bulletproof & AI demand so hot that we can absorb any interest rate increase.
Then Monday arrived & the reality hit.
The indexes slid backward, dragged down by renewed Middle East geopolitcal stress. The sudden realisation that when a risk free government bond pays you more than 5.2%, you don't need to chase high growth tech stocks to build wealth.
This isn't about liquidating your entire portfolio. It is about using this pullback to prune out unprofitable growth stocks & raise your cash reserves.
I like to park some cash into $iShares 0-3 Month Treasury Bond ETF(SGOV)$ while waiting to find bargains.
@TigerStars @Tiger_comments @Tiger_SG
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