30-Year America Bond Yields Hit 5%: A Warning of Major Turbulence for the Market in September

In recent days, the yield on the 30-year U.S. Treasury bond has skyrocketed to 5%. This is a zone of interest rates that appeared during the financial crisis, indicating a marked tension in the global capital markets. Generally, a high bond yield will provide the Federal Reserve of America (FED) with more grounds to cut interest rates in the future, as borrowing costs in the market have become too expensive. However, the downside of this development is the warning signal about the risk of economic recession. When yields rise sharply, investors' confidence in the stable growth potential of the American economy is shaken, and capital investment tends to withdraw from risky assets. September is expected to be a period of significant fluctuations. The stock market, gold, foreign exchange, and even cryptocurrencies are likely to witness consecutive “Boom and Bust” phases. This means that opportunities and risks will always go hand in hand, and investors need to have a clear response strategy. Some important principles during this stage: Control capital allocation – Don't go “all-in”, allocate wisely to avoid liquidation risks. Reduce leverage usage – Strongly fluctuating returns can cause risky assets to move unexpectedly; using high leverage can easily “blow up” your account. Prioritize risk management – Always have a stop-loss and take-profit plan for each stage instead of just expecting price increases. Closely monitor the movements of the FED and global capital flows – As this will be a determining factor for the market direction. In summary, the 30-year yield rising to 5% has opened up the opportunity for the FED to pivot its policy soon, but it also serves as a warning about the risk of recession. In this context, caution and discipline in portfolio management are key to helping investors survive and capitalize on opportunities from significant fluctuations.