US Markets Starting To Look Like A 'Banana Republic'? | New Harbor Financial

Stocks down, bond yields up & dollar down

Stocks prices are down, yields on bonds are up, and the dollar is weakening.

This is the type of behavior seen when emerging markets stumble into "banana republic" status -- not what one expects of the US.

In today's interview with the senior partners at New Harbor Financial, we discuss what's causing this worrisome action, how much longer it's likely to persist, and why investors need to prevent today’s inflamed emotions from causing them to make regrettable decisions.

To hear it all, click here or on the video below:

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Adam’s Notes: New Harbor Financial (recorded 4.23.25)

EXECUTIVE SUMMARY:

• Emerging Market Dynamics in U.S. Markets: John Llodra highlights the U.S. markets’ unusual behavior, with spiking bond yields and a weakening dollar resembling an emerging market crisis, driven by policy uncertainty from Trump’s aggressive tariff announcements.

• Policy-Driven Volatility: The April 2nd tariff declarations triggered a bear market, with a 20%+ S&P 500 drop, exacerbated by a rapid 10-year Treasury yield surge to 4.5%, destabilizing the bond market and basis trade, reflecting distrust in U.S. stability. We debate whether Trump’s aggressive approach is a calculated move to rebalance trade or wanton recklessness.

• Gold’s Parabolic Rally: Mike Preston notes gold’s $500 surge to $3,500, signaling systemic risks, advising rebalancing at 10-20% portfolio allocation while anticipating consolidation at