Investor Josh Brown says a sell-off in the bond market could help balance out the stock market’s excesses, rather than causing widespread harm. According to Brown, sharp rises in US Treasury yields may only affect the most speculative parts of the stock market, with smaller-cap stocks and technology startups potentially getting hurt. However, he expects that much of the move higher has already taken place, citing evidence of a slowing economy later this year as a reason for reduced yields.
Brown believes that investors will have to decide which story is more believable – one of ongoing supply chain shocks or an economy decelerating with inflation not being the main risk. He thinks the latter scenario is more likely and expects the Fed to implement more rate cuts than expected, leading to a “head fake” above 5% in yields for him.
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Source: https://www.cnbc.com/2025/05/22/josh-brown-says-higher-yields-arent-all-bad-could-help-work-off-some-of-stock-markets-excesses.html