Great write-up, Russell. Only question I have with higher bond yields longer term - how is it sustainable? As the saying goes, compound interest is the most powerful force in the universe and at 100+% of GDP and high deficit spending (I completely agree austerity is a losing proposition politically) it will compound to the next hundred per cent very quickly
Great write-up, Russell. Only question I have with higher bond yields longer term - how is it sustainable? As the saying goes, compound interest is the most powerful force in the universe and at 100+% of GDP and high deficit spending (I completely agree austerity is a losing proposition politically) it will compound to the next hundred per cent very quickly
Almost certainly they are going to have to keep yields below inflation. This is why I suggest long GLD/TLT, because the moment TLT yields are capped, I see GLD performing extremely well
Great write-up, Russell. Only question I have with higher bond yields longer term - how is it sustainable? As the saying goes, compound interest is the most powerful force in the universe and at 100+% of GDP and high deficit spending (I completely agree austerity is a losing proposition politically) it will compound to the next hundred per cent very quickly
Almost certainly they are going to have to keep yields below inflation. This is why I suggest long GLD/TLT, because the moment TLT yields are capped, I see GLD performing extremely well