...highly indebted individuals and companies would be pushed to the wall if rates have to remain high for longer due to Inflation 2.0 re-igniting again from stimulus boost, geopolitical risks and supply chain shocks (hurricane, weather dysfunction).
Why is the 10-year above 4%?
This summer, the economy was a party that was winding down.
Then, Jay Powell showed up with some booze and China brought the snacks.
Party is picking up! The risk? Trump is pulling up in an Uber outside, wearing a Hawaiian shirt... and bringing cocaine!
The 10-year could be at 5% by January! Will stocks like that? I don't know... I don't think anyone wants to party that hard...
