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Bond prices rose even more and plunged yields after President Donald Trump announced plans Thursday to impose. The following day, the yield on Germany's 29-year bond — the longest-dated on offer — dipped below zero percent for the first time ever. If it remains negative, investors will theoretically have to pay the German government to lend to it for any given length of time.
"For most investors and savers, the idea of paying to lend a borrower money — negative interest rates — over time horizons of up to 10 years and when inflation expectations are positive, is intellectually uncomfortable, if not irrational," he said in a recent note. Starting in the US, Emanuel doesn't see Trump fully carrying out his trade-war threats and damaging the economy as the 2020 election fast approaches. If tensions ease, investors would have one less reason to rush into the safety of bonds., further denting the allure of bonds. In Emanuel's mind, the mere prospect of big spending programs stemming from Modern Monetary Theory and the Democrats' Green New Deal is an inflationary force on its own.
How you profit is to not make decisions based out of fear or try to time crashes. It’s a fools errand. Just keep investing and stay invested. But I guess that headline wouldn’t get clicks...