Ahead of the next financial crisis, one market strategist claims this is ‘the best long-term risk-reward trade out there’

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... And there’s an ETF play for it.

Kevin Muir, longtime trader and market strategist at Toronto-based East West Investment Management, says he’s preparing for a market storm that nobody else seems to even be considering.

‘It’s what market participants are least prepared for, and what will hurt the most.’ Kevin Muir He added that if we know the TIPS yield and also the yield on a regular nominal bond of similar maturity, we can calculate the market’s expectation for inflation — the inflation breakeven rate. “It’s nothing more than the difference in yield between the two different types of bonds,” Muir said.In his words, it’s as simple as getting long TIPS and short the regular bond.

“What ‘everyone knows for sure but just ain’t so’ is the belief that inflation won’t return,” Muir said. “It’s what market participants are least prepared for, and what will hurt the most.”

 

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Yeah it's called student loans.

Is it a unknown unknown?

really mindblowing stuff

That's usually how that goes...

Sounds like a fortune cookie. I'll watch for that.

Thinking negative crap, dont give anyone the right to spread it with the public, ( out of respect)

Return of inflation? It never left! Have you seen the size of yogurt containers? Same price or higher and half the size or more of the original when yogurt first became a thing!

Trumps stupidity will wreck the market. Trade wars etc

Yeah. That’s how it generally works.

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