Stephanie Pomboy: Rising Bond Yields Threaten Everything (Video)

In this 5 August 2026 published video, Adam Taggart talks with Stephanie Pomboy who warns that surging government bond yields, driven by massive deficits and AI capital expenditures, represent the greatest threat to financial markets. She advises investors to avoid over-leveraged assets and consider defensive positions in physical gold, silver, and energy infrastructure. ”Higher for longer” bond yields appear to be heading even higher for even longer than Wall Street expected. This is the greatest threat to asset prices right now, claims Pomboy.

Higher yields act as the benchmark “risk-free rate”, forcing upward pressure on corporate debt, student loans, and consumer borrowing. Mortgage rates are climbing back toward 7 percent, freezing prospective buyers and further squeezing housing affordability. Massive private and public sector demand for capital—fueled by tech investments and government debt issuance—competes directly for funding, leaving less room for standard economic growth. As risk-free government bonds offer over 5 percent returns with guaranteed payouts, stock market valuations become increasingly vulnerable to corrections.

https://youtu.be/219X0wE8BWM

0:00 – Recuperation progress & Wilhelmina’s recovery
2:43 – Adam’s Glacier National Park trip & 25th anniversary
5:39 – Funny “celebrity recognition” story in the park
7:51 – July’s extreme market moves (NASDAQ, bonds, oil)
8:50 – Market ping-ponging on Iran headlines & strong earnings offset
12:12 – Framing the three big issues: stocks, oil, rates
12:48 – Fred Hickey’s view on AI earnings quality
14:34 – Mark-to-market gains distorting profits (Amazon/Anthropic example)
16:01 – Hyperscalers turning free-cash-flow negative & rising debt costs
17:05 – How much of S&P earnings growth is just accounting
18:20 – Downside risk if AI valuations reverse
20:49 – AI CapEx funding risks & capital constraints
21:12 – Corporate issuance now matching federal borrowing needs
22:36 – Share buybacks fading – companies become net equity issuers
24:28 – Long-end Treasury sell-off & Bank of Japan intervention
25:57 – Why higher-for-longer rates are here to stay
27:30 – Fed’s limited ability to control long-term yields
30:05 – Quiet balance-sheet expansion despite official rhetoric
31:17 – Secular deglobalization pushing rates higher over time
32:25 – Higher inflation/interest rates siphoning liquidity from financial assets
35:08 – Why hard assets & commodities should outperform
37:08 – Next recession deficits & $4 trillion pension underfunding
39:00 – Private equity/credit risks & high likelihood of pension bailouts
44:05 – Social fairness concerns & potential public blowback
52:00 – Can we still grow our way out (with significant pain)?
55:08 – The need for a cleansing of excesses before healthier growth
59:01 – Stephanie’s current portfolio positioning
1:00:36 – Where to follow Stephanie’s work