Friday, July 15, 2016

What Would Cause Interest Rates To Rise?
A Loss Of Faith In The U.S. To Pay Its Debts
"Betting on the 'end of the bond bull market' is a trade I wouldn’t take. Why? Interest rates are relative. With global rates at zero to negative, money will continue to chase U.S. Treasuries for the higher yield. This will continue to push yields lower as the global economy continues to slow. What would cause this to reverse? It would require either an economic rebound as last seen in 50s and 60s or a complete loss of faith in the U.S. to pay its debts such as a collapse of the Government and the onset of the 'zombie apocalypse.' We no longer have the drivers of manufacturing, demographics or credit expansion for the former, so I am ready for the latter."
- Lance Roberts
LINK HERE to the article

1 comment:

Anonymous said...

It does not have to reverse ... not in the life time of Lance. Zero has proved itself not to be an insurmountable barrier between negative an positive interest rates.