The U.S. Bond Sell-off may Signal a Further Sell-off in the Stock Market
$9.2 trillion of U.S. government debt will mature in 2025, with $6.5 trillion maturing in June alone.The U.S. government will need to roll over (refinance) a large portion of this debt, essentially borrowing new money to repay maturing bonds.Trump’s Pressure for Rate CutsTrump wants the Fed to cut interest rates, hoping this will lower government borrowing costs (bond yields).The aim is to minimize interest expenses on the newly issued debt in June 2025.But Fed Cuts Don’t Guarantee Lower Long-Term YieldsFed rate cuts help more on the short end of the yield curve; long-end yields may remain sticky or even rise if inflation expectations stay elevated or market confidence in U.S. fiscal credibility weakens.Investors in long-duration Treasuries demand a higher yield if they fear inflation or d
6 Questions on Why High US Debt Isn't the Crisis Everyone Thinks It Is
High debt should not be ignored—but nor should it be exaggerated. For now, investors have little reason to panic. The US is far from a debt crisis, and has ample flexibility to manage risks ahead.In recent months, heightened attention has been paid to the United States’ growing debt burden.With a debt-to-GDP ratio reaching 124% in 2024, many investors and media commentators have raised concerns about fiscal sustainability, rising interest expenses, and the potential crowding-out of future government investment.These fears have intensified in an environment of elevated interest rates and persistent budget deficits.Debt-to-GDP Ratios in 2024:CountryDebt-to-GDP RatioUnited States124%Japan259%Singapore173%India87%1. Why a High Debt-to-GDP Ratio Is Not Necessarily a ProblemDebt-to-GDP is a rati
Alphabet has Risen After its 1Q 2025 Earnings Beat
Source: CNBC, 26 April 2025Here’s how the $Alphabet(GOOG)$ did in 1Q 2025:Year-on-year (YoY) growth in revenue and operating income has been uneven.In 1Q 2025, revenue grew 12% YoY, while operating income rose 20.16%. However, both figures reflect a slowdown compared to 1Q 2024, when revenue and operating income grew 15.41% and 46.26%, respectively.Operating income has maintained YoY growth of over 20% for seven consecutive quarters, though the 1Q 2025 figure marks the slowest increase during that period. However, Operating Margin reached 34% in the latest quarter — the highest level in five years.Both gross margin and operating margin improved in 1Q 2025, rising to 59.7% and 33.92%, up from 58.14% and 31.63% in 1Q 2024.That said, operating margi