Watch what smart players like Warren Buffett and Jeff Gundlach are doing.

The U.S. Treasury bond market lately has been acting oddly. If you weren't worried already about the economy, now's a good time to start.

Let's set the stage. On Monday, April 7, Larry Fink, CEO of BlackRock - the planet's largest money manager and the grown-up among Wall Street adolescents - spoke to the Economic Club of New York. Calmly and reassuringly, he mentioned, "Most CEOs I talked to say we're probably in a recession right now," adding that American consumers were showing "more and more trepidation" in their spending.

Typically, when someone of Fink's gravitas issues a warning like this, investors stampede toward the safe embrace of U.S. Treasury bonds. Not this time. The same day that Fink was calling a recession, the 10-year U.S. Treasury (TY00) stunned markets with a plunge to 3.87% from 4.0%, then reversing course to close at 4.18%.

According to market guru Jim Bianco, since 1998 there have been only two other instances of such manic intraday swings - during the unfolding financial crisis triggered by the Societe Generale rogue-trading scandal in January 2008, and the volatile day after Trump's election shocker in November 2016.

In other words, welcome back to the circus.

To understand this circus, let's briefly delve into the psychology behind it. Bond investors are usually quiet types, but even they're panicking, selling U.S. Treasury bonds and running toward gold - the asset humans trust when politicians lose their way.

Why this sudden lack of trust? Because bond investors now see a U.S. where tariffs are rising, inflation makes an unwelcome comeback, and policy makers act without consistent direction. Naturally, the herd panics.

Nothing says 'I've lost faith in government' quite like hoarding elements from the periodic table.

And judging by gold's (GC00) surge - up 3.6% in a single day's session on April 16 - many investors would rather stockpile a shiny metal than relive 1970s-style inflation. Nothing says "I've lost faith in government" quite like hoarding elements from the periodic table.

If you're still not convinced, consider bond volatility as Wall Street's latest horror movie. Bond-market turmoil isn't some abstract indicator. When yields swing wildly - like they did on that manic Monday - it signals deep economic dysfunction. And it directly affects you. Higher yields mean mortgages balloon, student loans spiral and credit-card debt climbs.

Feeling reassured yet? Maybe this seems abstract. But bond-market turmoil also directly impacts your sense of wealth. When stocks rise, Americans spend. When stocks collapse, vacations vanish and home improvements halt.

Read: Parents are 'hunkering down financially' to brace for Trump tariff impact

All this diminished spending trickles upward into declining corporate earnings and reduced government revenues - especially capital gains taxes. It's the economic equivalent of pulling the emergency brake while speeding down the freeway: dramatic, dangerous, and inevitably leading to pile-ups.

If this imagery isn't convincing, here's serious financial advice from Jeffrey Gundlach of DoubleLine Capital - Wall Street's "bond king" - who told viewers of CNBC's Closing Bell on April 7 exactly how to survive:

-- His fund currently holds 25%-30% cash - a clear signal he's prepared for turbulence. You might consider raising cash, too.

-- Avoid leveraged bets, no matter how sweet they promise to be.

-- Stick to short-duration, high-quality bonds.

-- Buy gold - because when politicians and central bankers set your money on fire, you'll want something that won't burn.

-- Stay defensive until markets find solid ground (Gundlach suggests waiting for the S&P 500 SPX to hit 4,500).

-- Prepare for a likely U.S. recession (60% chance), meaning stocks might soon offer bargain prices.

Still skeptical? Warren Buffett is holding roughly $345 billion in cash-more than half of Berkshire Hathaway's $(BRK.A)$ $(BRK.B)$ assets - patiently waiting for a market panic to produce irresistible bargains. Buffett's cash reserve isn't idle money; it's a storm-warning gauge. When he starts buying, you'll know it's safe again.

Here's the bottom line: the bond market isn't just acting strangely - it's shouting a clear warning. You can laugh through the circus, but listen closely when Gundlach, Buffett and other respected financial-market veterans show you exactly how not to end up lion chow.

Right now, gold isn't speculation - it's insurance. It won't pay dividends or host cheerful earnings calls, but in chaotic markets, dividends vanish quicker than campaign promises, and CEOs show up apologizing dressed like Mister Rogers. Or raise cash - boring, yes, but when markets turn ugly, boring becomes beautifully safe. You could also own bitcoin - a digital version of financial safety, which I am doing in my own portfolio.

Remember, you don't need to run for your life - just run your finances with situational awareness. Read market signals carefully, adjust prudently and diversify wisely.

Charlie Garcia is founder and a managing partner of R360, a peer-to-peer organization for individuals and families with a net worth of $100 million or more.