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Carnage in Fixed Income

Carnage in Fixed Income

Before this year’s 10% decline in the Bloomberg Aggregate Bond Fund, the largest single year drawdown was 2.9% in 1994.  Incredible amount of pain for fixed income investors.  Hat tip Ben Carlson/@awealthofcs
Inflation Expectations Are Easing

Inflation Expectations Are Easing

“.. it is heartening to see the bond market’s one-year forward inflation expectation fall below 5% and the two-year expectation drop slightly below 4%. Those declines are some of the strongest evidence that overall inflation has peaked ..” @LeutholdGroup[Paulsen] Hat...
Third Worst

Third Worst

U.S. Treasuries are in the midst of their third worst drawdown in history.  No wonder investor sentiment is extremely negative.  Hat tip Wall Street Silver/@WallStreetSilv  
Major Pain

Major Pain

The bond market has gotten crushed this year.  This flush has dragged down the ‘balanced’ 60/40 portfolio.  Hence, the extremely bearish sentiment from individual investors.  There has simply been nowhere to hide.   Hat tip Jim Bianco/@biancoresearch The...
A Normal Correction…but

A Normal Correction…but

Over the last 20 years 10-20% corrections in the S&P 500 Index have been fairly normal.  The current one is quite different.  Bonds have tanked as well.  This has added a more intense amount of pain for investors, hence the very high levels of bearish sentiment.  ...