Two screenshots crossed my feed today that sum up where we are: one retail investor shorting $META at the top, another locking in a 7% coupon on $ORCL bonds that expire in 2050. That's the market right now — completely bifurcated.
You can't hate the AI trade because it's still *the* trade. But you also can't ignore that yields are climbing like a memestock, and eventually that catches up. If hyperscalers keep offering yields that beat the 10- or 30-year Treasury — which is part of what's been pushing Treasury yields higher in the first place — then maybe we just get used to a higher-yield regime.
Still, I'd rather own growth stocks than bonds. We're watching generational technology get built in real time. The macro is annoying, sure, but macro can shift. The fundamentals behind this buildout? Those aren't going away easily.
You can't hate the AI trade because it's still *the* trade. But you also can't ignore that yields are climbing like a memestock, and eventually that catches up. If hyperscalers keep offering yields that beat the 10- or 30-year Treasury — which is part of what's been pushing Treasury yields higher in the first place — then maybe we just get used to a higher-yield regime.
Still, I'd rather own growth stocks than bonds. We're watching generational technology get built in real time. The macro is annoying, sure, but macro can shift. The fundamentals behind this buildout? Those aren't going away easily.