Tactical Allocation Strategy

It's a yield spike.

Yep.

We had the 10-year go over 5.2%.

Yep.

Yeah, that has mortgage rates pushing up.

That was the

highest since 2007.

And the 20-year treasury, 5.57%.

That starts beginning to compete with equity allocations.

Yes.

If I'm running a pension plan, which we kind of are, then the fallout, I think the high-yield market is getting cheap.

It's starting to.

It's starting to get cheap.

So we could round up those allocations.

The reason the show is called Tactical Allocation Strategy is this is the time you really need somebody with deep experience in the bond market because everybody's obsessed with AI, right? That's right.

Overweight those stocks in the NASDAQ 100.

That's right.

They're overweight in the S&P 500.

At some point, the spending spree is going to come to an end.

So this is the time to start your bond strategy.

Yeah, there's an added piece to the AI equity allocations, right? There's lots and lots of leverage attached to it.

Okay.

There's leverage not only in the options market, but there's leverage in 2X, 3X ETFs that are designed to try to track plus or minus two or three times whatever the indexes or the stocks are doing.

Now, there's a reason that the rates were this high in 2001.

There was a Fed tightening in 1999.

It's a yield spike.

Yep.

We had the 10-year go over 5.2%.

Yep.

Yeah, that has mortgage rates pushing up.

That was the

highest since 2007.

And the 20-year treasury, 5.57%.

That starts beginning to compete with equity allocations.

Yes.

If I'm running a pension plan, which we kind of are, then the fallout, I think the high-yield market is getting cheap.

It's starting to.

It's starting to get cheap.

So we could round up those allocations.

The reason the show is called Tactical Allocation Strategy is this is the time you really need somebody with deep experience in the bond market because everybody's obsessed with AI, right? That's right.

Overweight those stocks in the NASDAQ 100.

That's right.

They're overweight in the S&P 500.

At some point, the spending spree is going to come to an end.

So this is the time to start your bond strategy.

Yeah, there's an added piece to the AI equity allocations, right? There's lots and lots of leverage attached to it.

Okay.

There's leverage not only in the options market, but there's leverage in 2X, 3X ETFs that are designed to try to track plus or minus two or three times whatever the indexes or the stocks are doing.

Now, there's a reason that the rates were this high in 2001.

There was a Fed tightening in 1999.