Treasury yields passing 5% won't break the market, says Ritholtz Wealth Management's Josh Brown
Speakers
Chris Hyzy
— Chief Investment Officer, Bank of America Private Bank
Josh Brown
— CEO, Ritholtz Wealth Management
Sonali Basak
— Global Finance Correspondent, Bloomberg
Summary
The panel discusses whether 5% Treasury yields will break the equity market. Chris Hyzy and Josh Brown argue stocks can withstand higher yields due to profit momentum and cash-rich consumers, while Sonali Basak favors quality and buffered strategies amid high-rate stress on levered companies.
- 30-year Treasury yield has topped 5.31% and the S&P has retreated from record highs.
- Chris Hyzy says the bull crowd is following profit momentum and higher yields are not enough to turn bearish.
- Josh Brown says $9 trillion in money market funds and deposits makes 5% less negative and even fuels spending.
- Sonali Basak says high rates hurt highly levered extend-and-pretend companies, so quality should outperform.
- Sonali Basak recommends buffered strategies or structured investments to limit downside while staying invested.
- The panel notes market broadening and cheap pockets outside crowded trades.
Ideas
Profit momentum outweighs 5% Treasury yields.
A 5% yield is not the market negative it once was because roughly $9 trillion sits in money market funds and deposit accounts earning real income; that cash has even fueled spending on travel and second homes, so the idea that 5% would break the market was wrong.
Flock to quality amid high rates.
High rates are punishing highly levered companies that kept extending and pretending, so investors should flock to quality; this quality shift is part of why the market is broadening.
Up Next
This CNBC video, published August 17, 2026, features Chris Hyzy, Sonali Basak discussing SPY, QUAL. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Chris Hyzy, Sonali Basak · Tickers: SPY, QUAL