Wall Street's Having a Meltdown! Is This the End of the World As We Know It?!

Mama Always Said Bonds Were Like a Box of Chocolates...

Well hello there. Forrest Gump here. Jenny always told me stories about Wall Street and such but I mostly just ran. Seems like that might be a good idea right now too because Wall Street's acting crazier than a box of chocolates where every piece is a different terrible surprise! They're talking about bonds and yields and stuff that sounds like a complicated math problem I ain't got time for. But what I understand is that things are going up when they should be going down kinda like when I ran that football all the way to the end zone... and kept on running! This time it ain't so good.

Run Forrest Run... From These Crazy Yields!

So apparently these here 10 year Treasury notes done jumped faster than me when I saw Jenny at that peace rally. Folks are worried 'bout a recession which I reckon is like a really bad storm for your money. Usually bonds are supposed to be your umbrella keeping you dry. But this time the umbrella's got holes in it! That yield thingy went up to 4.37% and overnight it even touched 4.51%. That's higher than Bubba's shrimp boat after a big catch. And get this the 30 year Treasury bond it went up to 5.02%. I haven't seen numbers that high since I won that ping pong tournament in China! It's all happening because of these tariffs which are like rocks in your shoes when you're trying to run a marathon.

Tariffs? Sounds Like a Fancy Word for Trouble

Mr. Trump he's got this plan to put tariffs on things from China like putting extra weight on my legs when I'm running. China they didn't like that too much so they went and did something back. It's like a ping pong match where everyone's getting hit in the face! This 'trade war' they talking 'bout is making the stock market go down faster than a lead balloon. Folks are worried this could make the economy go belly up like a turtle on its back.

Where's My Safe Haven?!

Now usually when folks get scared they run to bonds like they're running to Mama's kitchen for some chicken soup. Makes sense right? But this time they're running away from them! Someone told me about this iShares 20+ year Treasury Bond ETF (whatever that is) and it's down more than 6% this week. That's worse than when I lost all my Bubba Gump Shrimp Company money in that apple company! This Henry Allen fella from Deutsche Bank said they are losing their "traditional haven status". I am not sure what that means but it sounds bad.

China and Japan Selling? That's All I Need to Hear!

People are saying that China and Japan might be selling their bonds kinda like when I sold my shrimp boat 'cause the hurricane was coming. Turns out they're some of the biggest bond owners out there! And here's the kicker: Mr. Trump's been putting tariffs on them too! This fella David Zervos said that countries can use their stock of U.S. financial assets to create some problems! I reckon that's like using your ping pong paddle to whack the ball right into your opponent's face. Smart but maybe not the friendliest thing to do. It seems to be backfiring on the White House that for sure!

And That's All I Have to Say About That...

So that's the bond market folks. It's all a bit confusing like trying to understand what Jenny meant when she said she loved me. But I reckon it means things are a bit topsy turvy right now and maybe it's a good time to just keep running. If you need me I'll be on my shrimp boat. Making money or not making money. It does not really matter.