Why smart investors are playing defense right now.
Even if you haven’t, WE have been watching the bond market lately. And it’s felt more like a financial circus than a stable investing environment. Historically when stocks fall, bonds rise. As of 4/17, the S&P 500 Index is down (10%) while the bond market is up a meager
+2.22% year to date.
On April 7th, Larry Fink, CEO of BlackRock—the world’s largest asset manager—spoke at the Economic Club of New York and casually said:
“Most CEOs I talk to say we’re probably in a recession right now.”
That same day, something unusual happened: the 10-year Treasury yield swung wildly. It dropped from 4.0% to 3.87%, then reversed course and closed at 4.18%. These kinds of intraday moves have only occurred a few times in the past 25 years—most notably during the 2008 financial crisis and the 2016 election surprise.
These swings aren’t random. They’re signals. And they’re loud.
What’s Really Going On?
Normally, in times of uncertainty, investors move to U.S. Treasury bonds—considered among the safest assets in the world. But this time, something changed.
Instead of running toward bonds, investors are running away—and straight into gold. Why? Because trust in the government’s economic leadership is fraying. Rising tariffs, policy inconsistency, and lingering inflation fears are causing seasoned investors to seek safety elsewhere.
Gold jumped 3.6% in a single day last week. That shows investors are moving into a defensive position.
Why It Matters to You
Bond market turmoil isn’t just a Wall Street problem. It trickles into everyday life:
- Mortgage rates rise
- Student loan and credit card interest climbs
- Spending slows
- Business earnings fall
- Market volatility increases
And when consumer confidence fades, so does the broader economy.
What Are the Pros Doing?
Here’s what respected voices like Jeffrey Gundlach and Warren Buffett are doing—and recommending:
✅ Hold Cash: Gundlach’s funds are 25–30% in cash. Buffett is holding a record $345 billion in reserves.
✅ Stay Short-Term: Favor short-duration, high-quality bonds over long-term risk.
✅ Avoid Leverage: Now is not the time to gamble with borrowed money.
✅ Buy Gold: A timeless store of value when faith in fiat systems wavers.
These aren’t fear-based moves. They’re strategic. They’re rooted in discipline and patience—two qualities that serve investors best in uncertain markets.
What Should You Do?
You don’t need to panic—but you do need to pay attention. The market is sending signals. Now is the time to reassess your risk, increase liquidity, and ensure your portfolio reflects today’s reality—not yesterday’s optimism.
At Asti Financial Management, we believe that smart investing is proactive, not reactive. If you’re feeling unsure about where your portfolio stands—or if you just want a second opinion—we’re here to help.
Let’s make sure your financial plan is built not just to grow—but to weather whatever comes next.
Want to talk strategy? https://go.oncehub.com/15-Minute-Initial-Call