Thoughtful Money with Adam Taggart · Thursday, September 10, 2026
Michael Lebowitz discusses the disconnect between bond market fundamentals and prevailing narratives, noting that while fundamentals typically drive yields, short-term narratives can temporarily influence prices. He cites examples like AMC and GameStop where stock prices diverged from fundamentals.
“So, you know, Lance and I, I think we sound like a broken record here. We've been saying this for a while. And and they were coming down. And then Finn kicked in. Um, tariffs kicked in. So, kind of one of our themes is that there's bond fundamentals and there's bond narratives. And at the end of the day, historically, fundamentals drive yields.”
“But in the meantime, a narrative, and a narrative can be true or false, but a narrative can take over and drive the market. And we see it in the stock market all the time. There's a narrative behind the memory chip companies, behind the AI companies, behind meme stocks, behind gold and silver, behind crypto, behind, you know, we've seen one after another.”
“And those narratives, at times, can divorce a price from its fundamentals, right? AMC and GameStop are two great examples where the price was shot through the moon. The fundamentals of the two companies were not that good. And ultimately, price, or in our case, yield, comes back to fundamentals. And what we see today is a divergence between, uh, fundamentals and narratives.”