PCE Doomsday or AI Discount? Navigating the 5.5% Bond Shock

🌟🌟🌟The latest PCE report arrives at a time when there is a full scale bond market meltdown. The 10 year US Treasury yield has just reached 5.5% yield, carving out a fresh multi decade high.

This sudden spike signals that institutional bond investors are completely losing faith that inflation is under control. When guaranteed government debt yields a huge 5.5%, the mathematical gravity pull on high valuation growth stocks becomes severe.

Wall Street expects Core PCE to print at 3.4%. If tomorrow's report is hotter than expected, the 5.5% Treasury yield may go higher. This is bad news for the market.

My Take

I will continue to dollar cost average $State Street Portfolio S&P 500 ETF - SPDR(SPYM.US)which represents 500 of the best US stocks as time in the market completely obliterates timing the market. The PCE report is only a single data in a multi decade journey. Let the traders stress over the Fed's next phase while my automated wealth engine quietly compounds in the background.