What Does the Smart Money Say?

What Does the Smart Money Say?

by | Apr 28, 2020 | Bonds & Rates, US 10-Year Treasury, US 5-Year TIPS, Yield Curve

The market has been rallying largely on the hope of a quick ‘v-shaped’ economic recovery.

Or has it?

From mine, most mainstream headlines are taking that narrative.

But maybe there’s another school of thought…

For example, could it be the case that regardless of whether this recovery is “V”, “U”, or “L” shaped – it’s irrelevant to the stock market if the Fed has their back?

Why Negative Yields are actually a “Big Deal”

Why Negative Yields are actually a “Big Deal”

by | Aug 17, 2019 | Bonds & Rates, Lessons, US 10-Year Treasury, US 5-Year TIPS, Yield Curve

Negative yields are not something to take lightly. Part of the problem is many see low (or negative) yields / rates as just a benefit for potential borrowers. And it is… however longer-term negative yields will lead to bankruptcy for creditors like banks, insurance companies, pension funds and pensioners themselves (i.e., those who lend money)