Is the 10-Year Treasury Yield About to Break Out? What Rising Rates Mean for Bonds and Borrowing

**Justin Klein** (0:00)
You're listening to this podcast, so I know you've got a curious mind.
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**SPEAKER_2** (0:43)
This is Invest Talk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Justin Klein.

**Justin Klein** (0:58)
Good afternoon, fellow investors, and welcome back to another edition of Invest Talk. This is our Tuesday, June 2nd, 2026 edition of Invest Talk, and there's a lot of moving parts in today's market. We are here to help with all of it. There's so much to unpack from what's going on with inflation, the economic impacts of the political instability that we are seeing.
Obviously, sectors that some are booming, some are not doing so hot. That's always the case, but I have not seen a market in my 25 years of doing this that's as dispersed as this.
Chip stocks and memory stocks absolutely mooning. Usually, it's smaller cap names that can happen, where small cap names are the ones that are really moving, they're illiquid, and it usually marks the end of a bull market. But that's not what we're getting now. We're getting the bigger names of all sizes, just it's all about the narrative that's really driving it. The great flexibility of what's going on in today's market, meaning how option movements are impacting, or option positioning are moving stocks bigger than they used to. Same with the added kind of fuels that fire, which is passive index investing. All this amounts to a very unique market that we kind of never seen.
And so our job here is to guide you so you're not falling through the many pitfalls. Without volatility that you're seeing, without reflexivity across all different sectors, all different asset classes comes big rallies, big sell-offs, a lot of risk, a lot of, like I said, pitfalls that you can fall into. And our job is to help you avoid those, but still capitalize on the opportunities that are out there because there are plenty. Despite what people say about valuations, all this stuff, there are great opportunities in the market. This takes a little more work than normal. Guess what? It's not by reading headlines. It's not by watching CNBC. It's about understanding the market structure, understanding the companies that are likely to do well durably over time, not just a flash in the pan, but a few good quarters. So our job here is to help you become a better investor so that you can navigate this very interesting world we're working in. Now as you likely know, we wrapped up our latest Invest Talk Wealth Webinar on May 6th, just less than a month ago. It was about inflation. Thank you for all those that participated. But if you missed it, you can go check it out now for free over on the Invest Talk YouTube channel. And heads up, we do have a new Wealth Webinar coming up Tuesday, June 30th. Yeah, now less than 30 days away. Just a few, just four weeks from tomorrow, I believe. From 12 to 1 PM Pacific Time. The title is Beyond the Yield, How to Invest for Your Income Needs. Actually, two weeks, two weeks from today.
So make sure you head over to invest.com and register now. Just to be able to talk about today's market performance, run down the show topics as usual. But first, let's tackle this color question now.

**Pete** (4:42)
Hey, this is Pete in New Orleans. First, thanks for a great show.
My question is about Tenet Healthcare, THC.
I was looking to invest in some retirement housing and didn't do my due diligence. Seems that they're more specialty hospitals mostly in acute services. I really like to think, find out what you guys think of THC. I've got a near full position at 185 Thanks again.

**Justin Klein** (5:13)
All right. Looking at Tenet Healthcare, they provide healthcare services, they operate hospitals, ambulatory segment, acute care, ancillary outpatient facilities. This is typically an area that does well because of demographics. Demographics, they would say, demographics are destiny. In some ways, that's true. Now, you don't know how those demographics or how those people within those demographics are going to, how they're going to actually act in the economy. But you can get a sense by their current patterns of spending, how normal spending patterns change over time. That's why it tends to be pretty easy to say, okay, there's this many people of this certain age, they typically spend this much on health care or whatever, and you get a good sense of the changing direction, the changing dynamics within the economy. So you would think as baby boomers retire and they're still very wealthy, for the most part, and they're spending money on health care services, a lot of it's because it's needed, you saw earnings up 7% this year expected after being up 41% last year. However, earnings next year is supposed to drop 1%. And I think this all has to do with Medicare and Medicaid. So that's what I'm worried a bit about is will, are the changes in Medicaid going to impact their overall profitability? And analysts are saying, yes, yes, it is. And this is where analysts come in. There's a good lesson on analysts.