I think rates are going lower, the U.S. could even possibly try negative rates. In all honesty, it seems more probable than rates going higher (in the short term at least). Simply due to the fact that consumer lending is depreciating at a very rapid rate (especially now when UE benefits have been decreased along with stimulus "talks" resulting in no stimulus ). In a debt based economy consumer lending is what is most important for our financial and monetary system to stay afloat. With no lending.. It makes sense that "they" would drop rates, to encourage lending growth, and increase the value of the bonds all "they" bought. The craziest thing to me is how big the BS of the fed has got in such a short amount of time (added 220 years of debt in 10 months so far... WOW). Not to mention, there is also a historical amount of short interest on the bond market in 2020, especially on TLT. In terms of where we are in the "markets as a whole" .. the only thing that isn't in a bubble is the world reserve currency. I can completely agree that bonds are overbought, but no where near as overbought as the NASDAQ for example. I believe we have at least one more leg in the bond market.. mainly due to the fact that QE removes liquidity, & a historical short float on bonds; as a result, I genuinely do expect a "penny stock" like short squeeze in the very near future in the bond market.
As the bond king would say,
We are about to go "suborbital"
GL!
As the bond king would say,
We are about to go "suborbital"
GL!
