| A GREY SWAN PUBLICATION | Wednesday April 2, 2025 | Ripple Effect — April 2, 2025
The stock market is where investors go to make big bucks. The bond market is where investors protect their profits with safe returns.
Typically, investors want a higher yield from "riskier" bonds like low-rated corporate bonds, especially compared to U.S. government bonds, the gold standard of the fixed-income market.
The difference in yield that investors are willing to take between high-grade bonds and low-grade bonds is known as the "spread."
A rising spread is a sign that the bond market may be under pressure. We're now into those conditions. 
Spreads aren't quite at their highest level in a year, but they suggest that the big money in the bond market is staying cautious—a notion that should also apply to investors in other asset classes.
This isn't a "red flag" for the markets but rather a yellow flag indicating caution. We see it as another sign that the market will start to break between winners and losers, and investors need to be invested in the right MAGA stocks.
Andrew Packer P.S. from Addison: "Looks like another reason for gold's insatiable rally…"
📅 Tomorrow @ 11 A.M. EST
If you're a paid-up member of the Grey Swan Investment Fraternity, please join us for a live Zoom call tomorrow at 11 a.m. EST. We'll walk through our model portfolio and asset allocation strategy for this new era: We're getting everything set up now. Check your inbox tomorrow morning for the link. Seats are limited. Risk isn't.
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How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. 
(Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.)
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