Higher Bond Yields Mark a Return to Normal

• Global bond yields are normalizing to pre-financial crisis levels, making fixed income more attractive for yield investors.
• Inflationary pressures from tariffs and geopolitical events are also contributing to higher yields.
• Investors should rebalance portfolios, particularly if over-allocated to equities after years of strong gains.
• AI is a transformative technology, but caution is advised regarding capital over-allocation and picking long-term winners.

Barry Ritholtz discusses rising bond yields as a return to normal pre-financial crisis levels, combined with inflationary pressures from policy decisions. He advises investors to rebalance portfolios, especially given strong equity gains, and views AI as a transformative technology akin to the Industrial Revolution, despite current market speculation.