You can't outrun the gravitational pull of the bond market. Higher interest rates.

🏃‍♂️🚫You can't outrun the gravitational pull of higher long term interest rates.

That's why the stock market is down this week. Long term interest rates rose a lot.

When long term interest rates from bonds go up:

👉It makes the future earnings of companies worth less in today's dollars, so that drives down stock prices.

👉It makes borrowing more expensive for consumers and businesses. Mortgage rates go up. Auto loan rates go up. credit card rates go up. Corporate borrowing rates go up. Simply put, when life gets more expensive, we have to cut back on our spending, which is bad for the economy.

👉It means that local, state, and the Federal Government have to spend more money on paying back borrowers, which leaves less money for productive things that our society relies upon. Less money for social safety net programs, less for roads, less for public works projects, and less for research and development.

💣The bottom line on higher long term interest rates is that it lowers economic productivity, which is bad for everyone.

#interestrates #BondMarket #tariffs #retirementplanning