Monday, November 20, 2017

Bonds may not be a good buy for a while

Bond had a good run until October 2016
"The end of the bull market in bonds came in October last year. Rates have been rising for over a year now. Volume is coming on the down side. That is a material difference.
Clearly I don’t want to own the longer end of the curve. You will not want to own it for many years in the future. Probably two decades."

Stock market correction within next three years could help Bond bulls for a short time.
"We will get a material bear market in equities in the next three years. And you will wish you went to hide in the bond market for some small amount of time.
At this point in time, I’m not paying attention to the diversification element. Do I want to own bonds now? The answer is no.”