US 10-YEAR YIELD - NO NEED TO SAY MORE Taking a step back, one can easily see that we have entered a rising interest rate environment, similar to the 1960-1980 period. The key difference? Debt levels. Indeed, with far higher debt-to-GDP levels in the Western world, aggressively rising interest rate seems complicated. Debt-to-GDP levels (1970 VS 2025): USA: 35% → 124% UK: 73% → 102% France: 20% → 116% Germany: 18% → 63% Japan: 11% → 207% In this context, interest rates are likely to rise, but remain below inflation, so that debt levels can stay sustainable for indebted states, leading to negative real interest rates → financial repression. In such an environment, bond holder are likely to be most penalized. Those forced to own them should prefer short durations over longer ones, to avoid locking low interest rates for long periods of time, and reinvest the proceeds of maturing bonds at higher yields. While the situation is usually negative for stocks, commodity producers should be among the few winners of this period (together with commodities themselves). Value ones, due to their short duration, should be a far better option than growth ones, whose price is highly dependent on interest rates. How have you structured your portfolios for the years to come? Comment below. #OOTT $VOO $IWM $VTV