Investors Should Prepare for 5% Bond Yields and Focus on Real Assets

Financial expert Michael Howell warns of a new era of persistent monetary inflation, indicating traditional investment strategies may fail. The key is understanding the bond market and its signals.

Key points include:

2025 has seen market volatility; S&P fluctuated between 6,100 and 4,800.
Germany's DAX and the UK's FTSE are near record highs.
Global bond yields are rising, indicating concerns over inflation and debt.
The U.S. faces $37 trillion in debt, with over $10 trillion needing refinancing this year.
Short-term borrowing may provide temporary relief but risks long-term inflation.
Historical trends show that near-zero interest rates are unsustainable.
Long-term yields could normalize around 5% or higher.
Global shifts to short-term borrowing exacerbate the inflation issue.
Investors should consider real, scarce assets like Bitcoin, gold, top-tier real estate, and high-quality stocks.
The Federal Reserve is unlikely to cut rates soon amid ongoing inflation pressures.
Portfolios need to adapt to higher rates, tighter liquidity, and increasing debt.