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Templeton Bond Chief Stands Firm On Bearish Bet Against Treasuries: (TPINX)
FYI: One of the biggest contrarians in the bond market is holding firm to a long-held wager that Treasury yields are poised to break out even as global growth fears turbocharge the opposing side of the trade.
He may be right. Blackrock’s Larry Fink recently appeared on CNBC and mentioned “The Law of Unintended Consequences”. If, as appears likely, the China trade deal improves the U.S./ China trade balance (by their buying more U.S. products), China will need to unload part of their huge slug of U.S. Treasuries to pay for the increased imports. Less demand from China for U.S, Treasuries spells higher interest rates in order to attract new buyers.
I also continue to believe we’re going to see a ramp-up in inflation. Folks forget that it’s cumulative. So get into a 3+% annual and you’re looking at a 10% increase in prices over just 3 years.
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I also continue to believe we’re going to see a ramp-up in inflation. Folks forget that it’s cumulative. So get into a 3+% annual and you’re looking at a 10% increase in prices over just 3 years.
https://www.cnbc.com/2019/02/24/larry-fink-on-us-china-trade.html