Tuesday, March 28, 2017

Those Buying Bonds Based On The False Assumption of The Trump Trade Will Be Disappointed

The failed assumption is that the Trump trade exists. Investors buying bonds from 2017-2020 will likely lose more than just patience with the long bond trade. Not only are you fighting the short- to intermediate trends described by The Matrix but also long-term cycles. The big opportunity in bonds will be on the short side.

Headline: Why Raoul Pal sees a big opportunity in bonds

The so-called “Trump trade,” which reflects the expectation for inflation, has been losing steam in the market.

And now former global macro fund manager Raoul Pal sees a big contrarian opportunity. Going against the crowd, Pal is recommending that investors buy bonds. Specifically, he recommends U.S. 10-year Treasury notes (^TNX).



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