People Are Freaking Out About This Indicator For Stocks (Here's Why)

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Let’s talk about the upcoming week and why investors are freaking out about the 10 year treasury yield.

The last short while has been rough with report after report showing that the economy may not be fairing quite as well as expectations... inflation is on the rise with near record high CPI reports and consumer confidence starting to shrink down to pandemic levels.

Investors are concerned that that low Treasury yields could be a telling sign for the future.

0:00 Intro
3:29 10 year treasury explained

*I am not a financial advisor. This is not financial advice*

[dreastag]

I can literally feel myself learning from these videos. I can't say that for many other of these videos from other creators. Thank you.

[MasterJediJason]

These kinds of videos are my favorite. I dont have time to go through all the news to get these macro perspectives, I really appreciate your views.

[cantstopwontstopgamestop]

You by far and Charlie's vids have the most financial educational videos.

[Danieldfr]

Max, I’ve got to say, I’m a new subscriber and the content you deliver really is easy to understand for the average bloke and girl. Would love for you to keep this going, definitely a fan!

[wealthyreg]

You always stay on top of things. I appreciate it!

[TTNBear]

Wow, this Makes so much sense!!! Now I do understand! Thanks so much!

[evetsterrible]

Is there a financial youtuber that isn’t pimping webull? If so I’d like to know so I can subscribe.

[SnapcrackerzTeam]

Your the man love your information ace thank you !

[jennymadrid]

Good night Max! Thank you for sharing all that is important! Have a great night! Be safe! Blessings to you your business and all you do!🤗😍🤩💖💯

[brianborkowski]

Found your channel and enjoy learning. You are honest and knowledgeable. I will join your Patreon. I'm trying to decide what to do in the current market.

[marza]

But won't a rising yield have a negative effect on growth stocks as well since people sell their stocks and buy bonds since the yield is more attractive?

[Lemaaa]

It also could be because they have so much excess capital lately. They're helping pump retail stocks and pulling the rug out on multiple occasions now. I wouldn't be surprised if they end up having above average returns this year until people stop falling into the hype trap. The top 1% have found another way to take from the less patient 99%.

[tronjeral]

There are 2 things I want to mention here:

1) Your math is wrong. The treasury yield is already annualized, meaning for your example:
You buy a 10 year treasury, which gives you $1000 in 10 years for $900.
$1000/$900 = 1.11 which is a 11.1...% return over 10 years, which is an annualized rate of return of 1.11%, which would be the treasury yield displayed on the graph (I think it's even more complicated than that, I'm really not sure, but it's a good enough estimate)

2) Yields can go much lower. A few months ago, I was looking at european treasuries (just for interest) and saw an Austrian 96 year treasury selling for less than 0.7% interest. For comparison: A USD 30 year treasury still sells for 1.9% interest

[Bob-viuo]

Dawg i miss the livestreams for amc u need to do some more

[HemendraSinghMD]

Emerging markets are in deep deep shit... I don't know how that will impact.... if you can do some on that... thanks

[harrychu]

Institutional managers are on the wrong side of the "inflation" trade.

[JDHart]

Max, you’re right on target. Thanks for your great work.

[serge]

I am not freaking out. I don't care about yield.

[ladetteaqaanderson]

The stock market has the plunge protection team, crypto has nothing to stop it from going to zero.

[yetivanmarshall]

Also, the Russell 2000 has collapsed to the same % level as 2008.