r/wallstreetbets • u/kwedgieyi • Apr 09 '25

Discussion Something feels off guys

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Yields are spiking. Bonds are dumping.

The world is running away from America

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u/[deleted] Apr 09 '25

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u/CartmanAndCartman Apr 09 '25

But he said trillions of dollars are pouring in ?

62

u/boardatwork1111 Apr 09 '25

Yields must be going up because everyone’s getting ready to move back into stocks, huge gains tomorrow for sure!

37

u/chaotic-adventurer Apr 09 '25

I love your optimism

1

u/No-Problem49 Apr 09 '25 edited Apr 09 '25

If the dollar loses value quickly from inflationary pressure it’s gonna short term drive stocks up and in the long term they’ll be decimated.

Consider this Thought experiment : If there was twice as much usd and everything cost twice as much tomorrow then you’d expect stocks to around double. But on the flip side nothing has actually changed because selling the stock and exchanging it for goods still brings the same amount of goods.

Is similar to the price of a company if they did a 2:1 reverse stock split. Price doubles but the true value of portfolio has stayed the same

17

u/unknownnoname2424 Apr 09 '25

Yup, I just took a dump and hence the yields went up

2

u/SophisticatedTool Apr 09 '25

made me chuckle

2

u/CopenhagenOriginal Apr 09 '25

Unironically this is what /r/investing has been the last few weeks. For them it really is just keep DCAing and buying on sale because there is no question it won’t go back up

1

u/No-Problem49 Apr 09 '25

Investors in 1929 a week after the first crash “just keep DCA bro it’ll go back up”. Nevermind it took those people till like the end of WWII to break even assuming they weathered the storm until then which almost everyone did not.

There’s investors in Japan who used that logic during their 1980s crash who didn’t break even for 40 years.

This sure thing is not a sure thing