Monday, November 14, 2016

Global Bond Route

It ain't no use
We're headed for disaster
Our minds say no
But our hearts were talkin' faster
--Donnie Iris

Bonds still getting pounded with Ten Year yields up almost 20% in less than a week. Sovereign debt worldwide has joined the route.

Heard some talking heads this morning trying to drink the bond bloodbath pretty--e.g., rising yields signal optimism about global growth. Look at the Dow, they argue. It's hitting all time highs...

Don't drink that kool-aid. Although near term stochastics suggest the sell-off may be due for a breather, a secular trend higher in rates will eventually crush leveraged economies and markets.

position in SPX

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