Tom Bilyeu

So here's where, okay, can I do a quick PSA?

This is so important.

If, by the way, if you're thinking about starting a business, join Impact Theory University.

I teach this idea over and over and over and over.

The reason you can ask me any question about your business and I can give you an answer, I don't need a gazillion years of context, is because if you understand the mechanisms, then you understand cause and effect.

Once you understand cause and effect, industry doesn't matter anymore.

So the big thing that's going on here is when you understand the mechanisms of how this kind of stuff works, then you it's like, oh, shit.

OK, I get it.

So, for instance, when people are selling things off, then there is a so bonds are sold on the private market as well as initial auctions.

So they'll do an initial auction to get the thing into the system.

hugely important, how that goes, what price people are willing to pay, how much of it goes before they have to raise rates, all this stuff, very, very important.

But when people talk about the bond market, what they're really talking about are people selling things that they already own constantly all the time.

And so as people gain faith, lose faith, they buy and sell at different prices.

And

The fixed return of a bond is determined at the time of issuance.

However, when you sell it, if you sell it at a lower rate, you know what it pays out at.

So if I buy it at a lower cost and I know it pays out at that much, then we would say the yields have gone up.

If everybody thinks that it's going to be stronger, then it's like you can drive the cost up.

And now people are like, okay, I feel really good.

This is stable, but my yields are going to be smaller.