Bear Traps Report founder Lawrence McDonald told Fox Business host Cheryl Casone that rising global bond yields and tariff 'diminishing returns' under the Trump administration bear troubling similarities to conditions before the 1987 Black Monday crash. He warned that as bonds start offering competitive returns against stocks, the risk-reward calculation for investors deteriorates.
McDonald stopped short of forecasting a crash, urging 'extreme caution' instead, and suggested investors follow Warren Buffett's example by holding cash reserves and avoiding crowded trades.
The full dispatch is available from the source below.