When your pharmacist knows more about Nvidia than pills, we might have a problem. That’s the nature of runaway stocks. They pull everyone in because “this time, it’s different.” But at what price?
Your Survival Guy’s seen this movie before. Three times already this century, it ended with heartache and blame. No one likes losing money, and no one likes to admit they were wrong. But wrong they were in thinking there wasn’t any risk in chasing performance and yield.
Take a look at the chart of the 5-year treasury yield below. That’s as good a measure as any of the increase in the cost of capital. It’s also a good indicator of reality. The chickens will come home to roost. When is anyone’s guess.
Action Line: In my conversations with you we talk about your risk profile. History turns out to be a tough teacher. Avoid the heartache and get your financial house in order today. You’ll thank me later. Let’s talk.
Originally posted on Your Survival Guy.
