The problem for markets isn’t simply that Treasury yields are high right now. At these levels, the system can still function.
The more interesting question is what happens when “safe” returns become good enough.
If T-bills, money market funds and other low-risk instruments are paying investors a return they’re genuinely happy with, taking risk stops feeling necessary.
That changes the whole calculation.
Why own something volatile just to chase a few more percentage points if you can earn a decent return without sitting through 20–30% drawdowns?
At that point, risk assets aren’t only competing with each other anymore.
They’re competing with doing almost nothing.
And the higher that hurdle gets, the more upside stocks, crypto and other risk assets have to offer just to convince capital to leave the sidelines.
That’s where high yields become much more interesting to me.
Not because 4–5% automatically breaks markets.
Because at some point, “good enough” becomes a very strong competitor to risk.
The more interesting question is what happens when “safe” returns become good enough.
If T-bills, money market funds and other low-risk instruments are paying investors a return they’re genuinely happy with, taking risk stops feeling necessary.
That changes the whole calculation.
Why own something volatile just to chase a few more percentage points if you can earn a decent return without sitting through 20–30% drawdowns?
At that point, risk assets aren’t only competing with each other anymore.
They’re competing with doing almost nothing.
And the higher that hurdle gets, the more upside stocks, crypto and other risk assets have to offer just to convince capital to leave the sidelines.
That’s where high yields become much more interesting to me.
Not because 4–5% automatically breaks markets.
Because at some point, “good enough” becomes a very strong competitor to risk.