When Treasuries Tremble: Why Financial Experts Are Rushing to Gold and Cash

The U.S. Treasury bond market is exhibiting alarming behavior that suggests economic trouble ahead, even as stock investors remain seemingly oblivious. On April 7, Larry Fink, CEO of BlackRock, warned that most CEOs believe we’re already in a recession. Oddly, this statement didn’t drive investors to the usual safe haven of Treasury bonds. Instead, the 10-year Treasury yield experienced a dramatic intraday swing—a rare event previously seen only during major financial disruptions like the 2008 crisis.

Bond investors are increasingly distrustful of U.S. economic policy, fearing rising tariffs and returning inflation. This has fueled a flight to gold, which surged 3.6% in a single day on April 16. Such bond market volatility directly affects consumers through higher interest rates on mortgages, student loans, and credit cards.

Financial experts are advocating defensive positions: Jeffrey Gundlach recommends holding 25-30% in cash, avoiding leveraged investments, focusing on short-duration high-quality bonds, buying gold, and preparing for a likely recession. Similarly, Warren Buffett is holding approximately $345 billion in cash—over half of Berkshire Hathaway’s assets—waiting for market opportunities.