Monday, January 29, 2018

Bonds entering multidecade bear market

Are we headed into a long term Bond bear market ? 

"I do think we've ended the 35-year bull market, and people don't want to recognize the fact that the bear market began almost 16 or 17 months ago, in June 2016, when bond futures made their high and bond yields made their low. 

Bond futures prices continue to make lower lows and lower highs since early summer 2016. We’ve entered into what's going to be a protracted decade- or multidecade-long bear market in bonds. 

Even if you feel you've missed the first year and a half, it's still early. Bond yields are going to go higher for years into the future. But during these first years of rising rates, they’ll rise at a very slow pace."