Predictions of a bond market bubble are wrong
David rosenberg wrote this article in FT
How can a security whose price is constantly projected to decline by the economics community be in a bubble? How can any asset class be in a bubble where the capital is guaranteed and which pays out a coupon twice a year? It makes no sense.
History shows that deleveraging cycles typically last as long as seven years, and we have just completed year number two
Outside of wars, deflation is the norm, not the exception. The exception has been the experience of the post-second world war era. It is remarkable how so few people in the financial industry get it.
Entry filed under: Investing.