Own Some Gold and Avoid Overvalued Assets
By: GoldCore
GoldSeek.com
Friday, 4 May 2018
We could be heading for a golden age – or a return to the 1970s
By John Stepek of Money Week
The cost to the US government of borrowing money for a decade came within sniffing distance of 3% yesterday.
The US ten-year Treasury yield is sitting at 2.96% as I write this morning, having got to 2.99% yesterday.
Does this really matter? After all, 3% is just another number.
On the one hand, you’d be right to think that. On the other, it’s not so much the number as the direction that’s significant.
What the end of the bond bull market implies
If the US ten-year Treasury yield does breach 3%, we’ll be at heady heights not seen since 2013.
The big issue here is that bonds have been in a bull market since the early 1980s. In other words, yields (interest rates) have been falling, and bond prices have been rising.
This bull market in bonds has been accompanied by an almost equally long-lived bull market in equities. Stocks have suffered more painful crashes along the way, but broadly speaking, we had almost 20 years of good times up to 2000, then a crash to 2003, a rebound to 2007, another crash to 2009, and then near-enough another decade of good times.
The Rest…HERE
