Bonds Are Paying 5% Again, and the Repricing Has Reached Every Corner of the Market

Key Points

• The 10-year Treasury near 5% has compressed earnings multiples across the market, hitting slow-growth quality businesses like McDonald’s and Rollins before it reached the megacaps carrying the index.
• Porter Stansberry argues much of the AI build-out never earns an economic return, calling CoreWeave’s equity worthless while still holding NVIDIA as his high-quality compute position.
• His permanent portfolio splits assets into four equal 25% buckets—Treasury bills, gold and Bitcoin, property and casualty insurers, and top-tier stocks in seven dominant sectors—rebalanced annually.

An index can climb for the year while most of the stocks inside it slide. That was the market for most of 2026: a narrow group of megacaps carrying the S&P 500 while steady, slow-growth businesses lost ground. Now the index has cracked too, and the same pressure that hit quality names first is reaching the stocks that were holding it up.

That pressure has less to do with earnings than with the price of money. When a 10-year Treasury pays close to 5%, paying a premium multiple for a company that barely grows gets much harder to justify. Rates are the common thread running through quality stocks, the AI build-out and the federal debt load, which makes the cost of capital the number worth tracking from here.

Higher Treasury Yields Are Repricing Quality Stocks

For the first time since before the 2008 global financial crisis, bonds are a real alternative. Porter Stansberry, founder of Porter & Co. and a 30-year veteran of investment research, points to a 10-year Treasury yield near 5% and relatively safe corporate bonds paying 7% to 8%.

That shift hit long-duration, high-quality businesses hardest. McDonald’s NYSE: MCD spent most of 2026 well below its February high before a strong third quarter pulled it partway back.

Pest control company Rollins NYSE: ROL is down more than a third on the year after touching a near-50% decline in October. Nike NYSE: NKE and Chipotle Mexican Grill NYSE: CMG have taken real damage too. Stansberry estimates more than 80% of S&P 500 stocks have been in a bear market this year.

The market has been pricing rates that stay higher for longer, and a sustained drop in yields could flip sentiment fast. For buyers who won’t pay much more than 15 times earnings, the compression is the first real opening in years.

The AI Build-Out Faces a Return-on-Capital Problem

The other side of a narrow market is a crowded one. Stansberry doubts much of the AI build-out ever earns an economic return, and his sharpest call targets CoreWeave NASDAQ: CRWV, whose equity he considers worthless.

Frontier AI models carry no switching costs. Like commercial airlines, they’re remarkable machines without a business model that can support their depreciation and capital spending. He compares the moment to the post-Civil War railroad boom, which ended in a long depression starting in 1873 and a major monetary shift.

That doesn’t make every AI stock a short. Stansberry still owns NVIDIA NASDAQ: NVDA as his high-quality compute holding, separating the supplier from the businesses spending heavily on its chips. Even that name has come under pressure as investors trim AI exposure, which is the point: when capital gets expensive, suppliers and spenders both get marked down. Whether the build-out shows real returns before the depreciation bill arrives is what to watch.

Social Security Math Points to a 2029 Breaking Point

The 2029 date draws partly on the Fourth Turning framework from William Strauss and Neil Howe, which holds that generational crises take about 20 years to resolve. The authors marked 2008 as the start.

The more concrete trigger is Social Security. Ida May Fuller, the first recipient in 1940, paid about $25 into the system and collected roughly $23,000. About 16 workers once supported each recipient. Stansberry puts that ratio near two today, a gap no level of taxation can close in his view.

He cites 2032 as the depletion date in official trust fund projections and calls it optimistic, since it assumes low inflation and steady employment. He expects AI to drive white-collar job losses within 18 to 36 months, making the shortfall impossible to ignore by 2029. Federal debt has doubled since 2019, by his count, and governments that run out of money tend to reach for means testing, higher taxes and wealth levies like the 5% tax proposed in California.

Measured in gold rather than dollars, stocks have already fallen about 70% since before the financial crisis, per Stansberry.

A 25% Allocation Plan Built for a Currency Reset

Higher rates mean lower multiples, so his permanent portfolio starts by lightening equity exposure. Assets split into four equal 25% buckets, rebalanced every year.

The first holds 30-day Treasury bills, which earn more as rates rise. The second holds gold and Bitcoin as a standing allocation, not a short-term bet. The third owns property and casualty insurers instead of long-duration bonds, since their portfolios are mostly bonds run by managers who handle duration risk, with underwriting profit as a bonus. The last holds the two highest-quality stocks in about seven historically dominant sectors, including beverages, tobacco, aerospace, and high-quality compute.

The gold bucket is the one most investors have never actually built, and with the metal trading near records, buying it means buying strength rather than a dip. A standing allocation to hard assets is a different exercise than buying a miner or a fund, and the mechanics matter: physical metal versus a precious metals IRA, which mints are recognized, how the taxes work. The U.S. Gold Bureau walks through those options and the trade-offs with each, and their free investor’s guide to gold and silver investing covers the fundamentals before you commit any capital.

The risk is timing. Cutting equity exposure while a narrow rally runs can leave gains on the table for a long stretch. The upside is resilience. If yields keep climbing and the debt load forces a reset, a rebalanced mix leaves room to buy quality at depressed prices instead of selling it.

That annual rebalancing is the mechanism, not the forecast, and it’s the part of Stansberry’s 2029: The End of America that matters most today. The book lays out the full debt and demographic case behind the timeline, but the practical takeaway is simpler: a fixed allocation you reset on a schedule makes the decision for you when the market is at its least rational.

Why the Cost of Capital Runs Through Every Name in This Market

McDonald’s, Rollins, CoreWeave, and NVIDIA sit in very different corners of this market, yet the same variable prices all of them. Higher yields punish expensive quality and unprofitable growth alike.

None of this depends on 2029 arriving on schedule or on gold rallying next week. It depends on rates staying elevated and debt compounding faster than politics can respond. It doesn’t call for panic either. Most wealthy families came through the Great Depression intact, per Stansberry; the ones wiped out were over-leveraged.

Cheap money made a lot of mediocre businesses look fine for a decade. Expensive money is sorting them out, and that sorting is where the opportunity sits for anyone with cash, patience and a rebalancing schedule.