“20-year corporate bonds now yielding 6.3%...you would think with stocks up 20% past 2 years pension funds would be looking to park some of those gains in bonds” - Michael Hartnett, zeitgeist quote, Jan 17
One week after Michael Hartnett focused on one of the most salient foreign policy topics du jour, namely Trump's - and the world's - sudden fascination with Greenland, the Bank of America Chief Investment Strategist turns his attention back to US capital markets, and in his latest Flow Show note (available to pro subscribers), he reveals a remarkable statistic: the US bond market is on the cusp of a historic drubbing.
According to the BofA strategist, while "at no time in the past 90 years has 10-year rolling return from US Treasuries been negative", it is now, returning a negative 0.5% in the past decade...
