The 10-year Treasury yield just closed at 5% for the first time since right before the 2008 financial crisis.
That's not a random number. It's a psychological and technical level that changes how investors think about risk.
When the risk-free rate hits 5%, suddenly everything else needs to compete harder. Growth stocks, real estate, corporate bonds—they all look less attractive. Money flows back to safety.
This isn't just about rates going up. It's about the cost of capital resetting across the entire market. Borrowing gets expensive. Valuations compress. Margin of safety shrinks.
We haven't been here in 16 years. Last time, we know what happened next.
That's not a random number. It's a psychological and technical level that changes how investors think about risk.
When the risk-free rate hits 5%, suddenly everything else needs to compete harder. Growth stocks, real estate, corporate bonds—they all look less attractive. Money flows back to safety.
This isn't just about rates going up. It's about the cost of capital resetting across the entire market. Borrowing gets expensive. Valuations compress. Margin of safety shrinks.
We haven't been here in 16 years. Last time, we know what happened next.
