The Compound and Friends Dark Matter
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Jan 10, 2025 Julie Hyman, a seasoned financial journalist from Yahoo Finance, and Doug Boneparth, wealth expert and co-author of 'Money Together,' join the discussion. They delve into the implications of rising treasury yields on stock markets and the evolving job landscape for millennials. The duo highlights the importance of financial literacy in relationships, explores the challenges of artificial intelligence on job opportunities, and discusses the quirks of presidential candidacy alongside private equity's role in retirement plans.
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Rising 10-Year Yields and Stocks
- The 10-year Treasury yield's rise impacts stocks, especially when inflation rises alongside it.
- A 5% yield can trigger stock selling as bonds become a competing asset class.
The Term Premium Puzzle
- The term premium, the unexplained portion of bond yields beyond inflation expectations, is puzzling Wall Street.
- It's considered a powerful market force, impacting bond sell-offs and interest rate policy.
Real Estate Market Freeze
- Rising interest rates significantly impact the real estate market, making mortgages expensive and freezing the market.
- A realtor sold only one house this year, highlighting the market slowdown.