Wharton professor Jeremy Siegel explains why the bond market's 40-year bull run is doomed | Markets Insider

The bond market's four-decade bull run will be crushed under coronavirus stimulus and rising inflation, Wharton finance professor Jeremy Siegel toldTreasury notes and corporate bonds stabilized through April on the back of Federal Reserve relief measures, but an uptick in market liquidity will lead to bondholders suffering, Siegel warned.

After a dive through early March that pushed the Treasury yield curve below 1%, US notes have stabilized while corporate bonds surged through April. The Federal Reserve's March 23 announcement that it would begin buying corporate debt alleviated credit-health stresses and formed a direct support for investors mulling debt markets.

Rising inflation weakens bond values by eating away at the asset's face value. Longer-maturity bonds are particularly vulnerable to a steady rise in inflation.

If you keep repeating the same thing over and over, you'll eventually get it right. This article was from nearly 10 years ago. $TLT

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Wharton's Jeremy Siegel declares end to the 40-year bull market in bondsWharton finance professor Jeremy Siegel expects the interest rate on bonds and inflation to significantly rise over the next several years. TradingNation CordovaTrades i said this months ago when it ended in parabolic blowoff at 0.3 % yields. TradingNation Can you imagine if the govt, companies or people had to finance debt at 5 or 6%? Disaster for everyone. Wealth destruction and monetary reset- maybe finally end fed TradingNation ....Again
Fuente: CNBC - 🏆 12. / 72 Leer más »

Wharton's Jeremy Siegel declares end to the 40-year bull market in bondsWharton finance professor Jeremy Siegel expects the interest rate on bonds and inflation to significantly rise over the next several years. TradingNation CordovaTrades i said this months ago when it ended in parabolic blowoff at 0.3 % yields. TradingNation Can you imagine if the govt, companies or people had to finance debt at 5 or 6%? Disaster for everyone. Wealth destruction and monetary reset- maybe finally end fed TradingNation ....Again
Fuente: CNBC - 🏆 12. / 72 Leer más »