FYI: Bond investors tend to fixate on worst-case scenarios, and that has been the case in the past two weeks. Bonds rallied and yields tumbled around the world, with holders of 30-year U.S. Treasury bonds earning a supersize (for bonds) 8.4% on their money over 10 trading sessions.
Run-of-the-mill worries about corporate profits or tighter monetary policy can’t be blamed for the latest gyrations, which sent 10-year Treasury yields as low as 1.6% Wednesday, especially as three Asian central banks announced surprise rate cuts this past week. Something else is gnawing at the market—fears of a looming recession, perhaps, or an escalation of the trade spat between the U.S. and China, or even a Chinese military response to the weeks-long protests in Hong Kong that could spark a regional conflict and draw in other countries. Global markets are “expecting Armageddon,” as one trader wrote in a note to clients on Wednesday.
Regards,
Ted
https://www.barrons.com/articles/the-bond-market-smells-big-trouble-where-to-hide-51565399138?mod=past_editionsM* Snapshot FGMNX:
https://www.morningstar.com/funds/xnas/fgmnx/quoteM* Snapshot VFIIX:
https://www.morningstar.com/funds/xnas/vfiix/quote
Comments
“Big trouble ...”
“Where to hide ...”
“How this bull market will end ...”
“Bond Market’s Dot Com Moment...”
“S&P 8X more likely to drop 5% in a month ...”
“Saving ourselves ...”
“... take shelter from stock market storms”
“Dodging the dangers of dividend stocks ...”
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Time to go pour myself a drink.