Greetings!
This week’s Advice for the Good Life reminds us that opportunity often lies beyond today’s headlines.
In this week’s Wealth Advisory, we examine why rising interest rates and real yields matter—and how they may shape investment decisions and resilient portfolios in the years ahead.
In Wellness Navigator, Christine Despres shares reflections from Italy, where fresh food, community, and the Blue Zones offer timeless lessons for living longer, healthier lives. It’s a refreshing reminder that many of our most important health decisions are made one meal—and one habit—at a time.
We hope this week’s edition leaves you happier, healthier, wealthier, and wiser. If you find it helpful, please enjoy, share, and subscribe—and thank you, as always, for allowing us to be part of your journey.
Until next time, may you continue to grow happier, healthier, wealthier, and wiser.
Thank you for your trust, your readership, and the opportunity to walk alongside you on your journey toward the good life.
Warmly,
Wealth Advisory: How Elevated Yields Shape Investment Decisions
Treasury rates have climbed to their highest levels in recent years, driven by a combination of inflation concerns, oil prices, the national debt, and Federal Reserve policy. The 10-year Treasury yield has once again surpassed 4.6%, and the 30-year yield has remained above 5% for the longest sustained stretch since 2007.1 In general, this is a favorable development for long-term investors, as higher yields support portfolio objectives such as income generation and stability.
Perhaps more notably, real yields have risen even further. Understanding these movements is important for investors because they have broad implications for investing and financial planning. Portfolios and financial plans should account for these shifting interest rate and economic conditions, particularly given how much they have changed over the past decade.
The distinction between nominal and real interest rates is straightforward, even if the terminology sounds technical. A nominal yield is simply the stated interest rate on a bond, whether it is a corporate investment grade bond or a U.S. Treasury note. The real yield takes this a step further by reflecting what an investor earns after accounting for inflation. Real yields represent the true return for savers and therefore serve as a key benchmark against which all other asset classes are measured. Given the significance of rising real yields, there are several important considerations for investors.
Long-term real yields are near multi-year highs
The chart above illustrates how real yields have evolved over the past decade and a half. In 2020, for instance, real yields on government bonds actually turned negative, meaning investors were either anticipating little to no inflation in the years ahead or accepting a guaranteed loss of purchasing power in exchange for the safety of U.S. Treasury securities. This outcome was largely by design, as the Fed cut rates to support the economy and encourage investors to allocate toward stocks, real estate, and other higher-yielding assets.
Yields then shifted sharply in 2022 when inflation spiked, prompting the Fed to reverse course by raising the federal funds rate at the fastest pace in decades. Both nominal and real yields surged as a result. Today, the 10-year nominal Treasury yield stands at roughly 4.7%, while the corresponding real yield is 2.4%, well above levels seen since the global financial crisis. These figures reflect inflation expectations over the next ten years, not just the most recent data.
Several factors are keeping long-term yields elevated. Oil prices have risen back above $90 per barrel for Brent crude amid the ongoing war in Iran, and gasoline prices have climbed back above $4 per gallon nationally.2 Higher energy costs can feed directly into broader inflation, which in turn pushes nominal yields higher. Notably, inflation expectations have not risen significantly based on market measures and surveys, largely because many market participants anticipate the Fed may raise rates over the coming months to address rising prices.
Separately, the growing national debt and federal budget deficit continue to create uncertainty around government bond yields. This affects what economists refer to as the “term premium,” or the additional yield investors require to hold longer-term bonds. With the total national debt now exceeding $39 trillion, larger interest payments naturally increase the government’s borrowing costs, putting upward pressure on U.S. Treasury yields.3
Higher yields affect all parts of the market
Interest rates extend their influence well beyond the bond market, shaping the relative attractiveness of different asset classes. This is particularly relevant for long-term investors, as it affects how various assets in a balanced portfolio compare to one another. The chart above, for example, shows the S&P 500 earnings yield, which is calculated by dividing earnings per share by the price of the S&P 500. This valuation measure provides a useful basis for comparing the stock market to prevailing bond yields.
This comparison is commonly referred to as the “equity risk premium,” as it measures the additional benefit available to investors who take on greater risk in the stock market. When real bond yields were near zero or negative, as they were for much of the post-2008 period, stocks faced little competition. Investors were willing to accept lower earnings yields from equities because there were few alternatives for yield and growth. This environment was widely described as TINA, or “there is no alternative.”
At current levels, the 10-year real yield of 2.4% means investors can earn an attractive, inflation-adjusted return from government bonds. The S&P 500 earnings yield sits at roughly 4.9%, corresponding to a forward price-to-earnings ratio of approximately 20x. As a result, thoughtfully evaluating the balance of stocks and bonds within a portfolio has become potentially more important than in prior years.4
The Fed balance sheet and what it means for yields
Another factor influencing bond yields is the uncertainty surrounding Fed policy under the new leadership of Kevin Warsh. One task force he has launched, for instance, is focused on addressing the central bank’s $6.7 trillion balance sheet. As illustrated in the chart above, the level of assets held by the Fed has increased with each economic crisis. While it has declined in recent years as assets have matured, it remains far larger than it was prior to 2008.
Warsh has long maintained the view that the Fed should reduce its balance sheet when the economy is in good health. This would involve selling Treasury securities and mortgage-backed securities, which effectively pushes Treasury bond yields higher and raises borrowing costs for businesses and homebuyers. Combined with expectations of Fed rate hikes, these actions could keep both short-term and long-term interest rates elevated for an extended period.
For long-term investors, this environment underscores the importance of maintaining a thoughtfully constructed mix of stocks, bonds, and other assets aligned with their financial goals.
The bottom line? Real yields are at their highest levels in years, driven by inflation concerns, fiscal uncertainty, and a shrinking Fed balance sheet. A thoughtfully constructed and well-balanced portfolio aligned with financial plans is more important than ever.
References
- https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics
- https://gasprices.aaa.com/
- https://www.jec.senate.gov/public/index.cfm/republicans/debt-dashboard
- Clearnomics research and LSEG data as of July 27, 2026
- https://www.federalreserve.gov/monetarypolicy/task-forces.htm
Wellness Navigator and Holistic Brain Coach, Christine Despres, RN, NBC-HWC, CDP
What Italy, the Blue Zones, and Olive Oil Can Teach Us About Living Well
If you know me, you know I love food. I look forward to every meal, whether it’s a day trip up the coast of Maine, scouring the farmers market for what’s in season or the best, most authentic restaurants in Italy. Food genuinely lights me up.
It wasn’t always this way
I grew up in the seventies on Hamburger Helper and Rice A Roni. I hated seafood until my twenties. Then in college, somewhere between nursing school, the freshman fifteen, and cafeteria meat barely fit for human consumption, I went vegetarian. It’s been quite a journey to get from there to here.
Today I happily eat almost everything, though I work around a few realities, which I know many of us do: I’m sensitive to gluten, I carry a genetic predisposition to high cholesterol so I watch saturated fat, I have mild osteopenia so I focus on calcium, and midlife means being intentional about protein, fiber and healthy fats too.
It gets complicated.
But the beautiful thing about vacation is I let all of it go.
My big question before Italy
Would I actually be able to eat the pasta, the bread and the sandwiches I’d been dreaming about, the things I mostly avoid at home?
The answer is yes, and I savored every bite.
Honestly, vacation itself comes with mild GI complaints, something I’ll dig into another time, but it didn’t take anything away from the joy of the meals themselves.
Europe holds a different standard when it comes to food and the health of its citizens. What I ate was fresh, seasonal and homemade rather than processed, packed with seed oils and fillers the way so much of our food is here.
That contrast is something I carry into my home and my coaching.
Real food is where it’s at, but in the US it’s expensive, wrapped in plastic and often shipped in from halfway around the world before it lands on your plate. Non va bene.
What I loved most
Italians take real pride in their food, culture, preparation and in savoring a meal as a community. My own love of gardening and the farmers market gave me a real appreciation for how regions build meals around what grows right outside their door.
Running through every meal was one thread: fresh, local extra virgin olive oil.
All that olive oil is more than delicious, it’s one of the most brain-protective foods on the planet, and it’s part of why Sardinia is one of the world’s five Blue Zones, regions where people live measurably longer, healthier lives.
The One Thing You Can Control
This is a message that comes up in my work all the time. Nutrition is the basis of your health and wellness. You are what you eat, and food is medicine, that’s one of the primary aspects of my coaching. Unlike your genetics or family history, this is something you actually have control over.
You don’t have to move to Sardinia to borrow a page from the Blue Zones playbook. Stick with me and I’ll show you how.
Join me for the next Brain Boost Session on Wednesday 8/5/26 10 am ET to learn the secrets of centenarians of the Blue Zones.
Sign up here: Brain Boost Sessions
Ciao Bella,
Christine
Brain & Metabolic Health Coach | RN, NBC-HWC, CDP