The Big Squeeze: High Bond Yields Becoming A Problem For Stocks | Jan van Eck

Rising 10-year bond yields are currently reshaping portfolio allocations, as attractive fixed-income returns compete with traditional equity benchmarks. While the AI megatrend continues to drive market growth, the ecosystem is evolving; although token consumption is shifting toward cheaper, open-source models, high-value revenue remains concentrated within frontier models like Anthropic and OpenAI due to enterprise switching costs and security needs. Meanwhile, significant economic growth is increasingly occurring within private markets, though these assets require long-term horizons and disciplined selection due to liquidity constraints and valuation premiums. Real assets, particularly gold and energy, remain structurally undervalued and essential for portfolio stability, despite being under-represented in many current investment strategies. This environment of higher interest rates and the maturation of the AI sector necessitates a diversified approach that balances public market tech exposure with private growth and tangible real assets.