But I wouldn’t view 5% as a reason to abandon stocks. I’d view it as a higher hurdle rate. At these yields, valuations matter more, and I’d be much more selective about what I own.
The key difference is growth. A Treasury coupon is fixed, while strong businesses can grow revenue, earnings and free cash flow over many years. AI, cloud infrastructure and productivity investment could create additional earnings opportunities even in a higher-rate environment.
So my choice is 🅱️ Stocks, provided the investment horizon is long enough and the valuation leaves room for future growth.
5% may be a great return today. But owning growing businesses can potentially compound wealth far beyond a fixed yield over decades.
@TigerEvents [龇牙]
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
