FYI: In August, Jamie Dimon, CEO of JPMorgan Chase & Co. and the nation’s most prominent banker, predicted the yield on the benchmark 10-year Treasury note could reach 4% in 2018. He cautioned investors to prepare for 5% or higher.
Dimon’s call was not a contrarian one. It had become conventional wisdom on Wall Street that rates were headed higher and that the Federal Reserve would be tightening monetary policy for the foreseeable future.
Jeffrey Gundlach, the billionaire bond king who predicted the yield on the 10-year Treasury would hit 6% in 2020, said in October as rates were spiking that the 10-year yield was in the middle of its move upward and would soon reach 3.6%.
In 2018, the biggest billionaire names in bond market investing over the last 30 years all echoed this sentiment. Ray Dalio was talking about the potential for the largest bear market in bonds in nearly 30 years. Bill Gross and Paul Tudor Jones forecasted that bonds would plunge.
Regards,
Ted
https://www.forbes.com/sites/nathanvardi/2018/12/07/surprise-the-late-year-bond-rally/#14ec9b132a95
