I know everyone here is overly risk-averse, so naturally the bond market isn’t even an afterthought.
But in reality, the bond market is superior to the equity markets and makes the equity market look like an ant. And it’s full of extremely conservative investors who, in periods of recession, tend to see a very conservative drawdown. Well, they are literally tearing their faces off, especially in the last few days. For example, the TLT 20+ year long-term treasury ETF is down 35% from its 2021 high lmao.
Let me be absolutely clear, if some of the most conservative financial instruments are being decapitated. Riskier junior stocks will be deleted. Reality begins to set in, the position accordingly.
We are in the midst of the biggest mortgage rate shock since 1981. pic.twitter.com/gZQTgAeUao
— Lance Lambert (@NewsLambert) September 27, 2022
Goldman Sachs turns bearish on stocks, while BlackRock says ‘most stocks are fleeing’
This long term UST bond decline of 20% per year has only happened twice…1931 and 1937. Now we are witnessing history. pic.twitter.com/u63k2fQFuZ
— warren bachman (@warrenbachman1) September 27, 2022
Disclaimer: This information is for educational purposes only. Do not make any investment decisions based on the information in this article. Do your due diligence or consult your financial professional before making any investment decisions.