Right now there’s a gap between where the bond market says interest rates are heading, and where Federal Reserve officials say they’re going — and the so-called bond king says investors should put their faith in markets.
One... Right now there’s a gap between where the bond market says interest rates are heading, and where Federal Reserve officials say they’re going — and the so-called bond king says investors should put their faith in markets. One slide from Gundlach’s presentation recommended investors swap out the federal funds rate with the 2-year Treasury TMUBMUSD02Y .
I'd do well in a rate-raising environment with investments that provide higher yields. Who doesn't favored investments like high-yield bonds and foreign bonds and mortgage-backed securities, which can thrive in an environment of higher interest rates?
8 week Tbills are paying like 4.4% anyone not taking advantage of that in this market is crazy. Buy every week for 8 weeks then just keep on rolling it over. Hardly even a point for a savings account anymore.
Facts, bonds are where the smart money is. This market makes no sense anymore.
Clown
I believe that's true. I also believe that the economy, even the borrowing economy, will find innovative ways to disconnect from what the Fed is doing; Since it's so callous and just irrational. Powell is pursuing a bad, destructive course right now; Listen to Biden's Yellen.