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| What fell sharply in 2009? Government long-dated bonds. They are down nearly 20% over the last year. This is the first major decline in the government bond market since the big bond rally began in 1982. If we were truly in danger of a lasting deflation, these bonds would have rallied, enormously. Instead, they fell for the first time in 30 years.
The era of ultra-low interest rates is over. And it will not return in my lifetime – not as long as paper money continues to exist. Shorting the U.S. government bond market is the best long-term trade in the world--P.Stansbury | |
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fixed interest debt and holding commodities
