Stock Investment Lesson Pain

US Treasuries are the New 'Japanese Widow Maker'

The treasury market has been back and forth all year long so far.  First, we saw that huge rally that recently ended but it gave investors the belief that domestic policies were solid and Europe was stable.  As the months rolled by, we began to notice that domestically, conditions are soft here in the US and Europe is now on the brink and fighting for survival.  Pimco’s Bill Gross has been a Treasury bear for quite some time now and while it burned him in the second half of 2011, he thinks its a good idea again!

US Treasuries were typically considered a “safe haven” until the Fed’s QE programs, US debt rating cut and debt level rises.  These three events alone have done a considerable amount of damage to the integrity of the US Treasury bond.  US government bonds were supposed to be your back up, your safety net if the market turned sour.  Now yields are diving and it is no place for investors to be. What seemed like such an obvious short, turned out to be a great long.

SORRY!

This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email support@valuewalk.com and we will get back to you as quick as humanly possible


Saved Articles
X
TextTExtLInkTextTExtLInk

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Opt out of occasional 3rd party offers


Congrats! Are you a smart person? We have a limited time offer for sophisticated and loyal readers like yourself.

Sign up today and get three months free

Use coupon code VIP19 or click on the button below

Limited time offer only expires 8/31/2019 or next 30 now just 2 subscribers whichever comes first – please do not share this discount with others

 

0