Holy crap, this is just like 39 years ago: U.S. stocks hit record highs, Treasury yields skyrocketed, and then one day the market dropped 20% This combo is seriously a bit scary right now. The Nasdaq just hit an all-time high, the 10-year U.S. Treasury yield touched 5.35% intraday, and the 30-year yield hit 5.70%. Meanwhile, the Fed just raised rates in September to 3.75%–4.00%. On the other side, Japan's 30-year government bond yield surged to a record high of 4.235%, and the U.S. ISM Services Price Index climbed to 74. Stocks are still going crazy pricing in growth and AI, while the bond market has already started pricing in inflation and higher rates. Before Black Monday in 1987, we saw almost the exact same setup: Stocks hit record highs, long-term bond yields spiked, the Fed hiked rates, inflation fears heated up, and Japan's bond market was also in turmoil. Then on October 19, everyone suddenly rushed for the exits at the same time. The Dow plummeted 22.6% in a single day, and the S&P 500 dropped 20.5% in one day. History doesn’t repeat itself exactly, but the most alarming signals are already here: the bond market is screaming that money is getting more expensive, while the stock market is acting like it doesn’t care and keeps hitting new highs. One of these sides is definitely wrong. https://(x.com)/DeFiTracer/status/2107233536545878103/video/1