Let’s analyse the formation of the bond bull market which began in 1982. We’ll use the US 10-year as proxy. Here it is in all its glory: The 60’s and 70’s saw bond yields run from a low around 4% to over 10% at the tail end of the 70’s. For bond bulls this was [Read More]
While Everyone’s Focused On Yield Curve Inversion THIS Is Happening
While most pundits and talking heads are focused on the yield curve inversion, a much more alarming market event is underway. [Read more]
World Out Of Whack: When Bonds Trade Like THIS Asset?
Market dislocations occur when financial markets, operating under stressful conditions, experience large widespread asset mispricing. Welcome to this week’s edition of “World Out Of Whack” where every Wednesday we take time out of our day to laugh, poke fun at and present to you absurdity in global financial markets in all it’s glorious insanity. While we enjoy a good [Read More]
You Cannot Go Unprepared into This
A recent conversation I had with an exasperated parent of a teenager showed me how horribly things can turn out if parents have no discipline when raising kids. If parents have been spoiling poor little “Johnny Snotbrat” for most of his life and let him get away with murder at some point he may actually do just [Read More]
The World’s Most Crowded Trade
With over $900 billion invested into bond funds by mom-and-pop investors since the global financial crisis, the great law of unintended consequence is gearing up to rear its ugly head. Once again, money will be taken from those least able to afford it. Take a look at the graph below, which shows the spread between [Read More]
