The Scariest Halloween Costume of the Year

Don't dress like this woman...

Dear Fellow Expat,

I'll be dressed as Mario. My daughter, Princess Peach.

But there's one terrifying costume I'll be looking for while out trick-or-treating...

Treasury Secretary Janet Yellen. (or any central banker)

Because today's bond market is turning our momentum signal RED yet again.

Let's discuss one of finance's fundamental lessons: how the bond market affects the stock market...

The Bond-Equity Connection

The global debt market is the backbone of finance.

The relationship between bonds and stocks drives the markets in ways most retail investors don't consider.

When bond yields rise, every company's cost of doing business increases.

Higher rates mean higher borrowing costs.

This affects everything from working capital to expansion plans.

More important, it changes the risk-reward calculation for investors like you.

When bonds offer attractive yields with significantly lower risk, the premium for holding stocks must increase.

Remember, bondholders get paid first in the event of bankruptcy.

Sh…