Stephanie Pomboy: The Higher Yields Go, The Higher The Odds The Market Cracks

Pomboy argues households raiding investment accounts to pay bills signal consumer distress like the pre-GFC housing bubble, not strength.

Bond yields keep rising yet equities keep setting records; she hears deafening 1987 echoes and expects the market to crack under higher rates.

Credit is cracking first: triple-C spreads top 1,000 basis points (deep-junk borrowing stress) and Oracle sits a notch above junk.

She expects a sharp risk-off break rather than a slow slide, followed by a slower-than-expected Fed rescue and exploding deficits.

The pair counsel matching portfolio risk to required returns and favor hard assets like gold as post-rescue inflation returns.