Faber and Schiff: The American Bond Bubble
by Dian L. Chu
As I’ve been saying for some time that the bond market is screaming for an imminent burst, now Dr. Marc Faber and Mr. Peter Schiff also spoke with CNBC on Aug. 23 warning of a bond bubble trouble.
Faber – Stay Away from a 19-year Rally
Faber advises investors “stay away from Treasurys as they’ve been rallying since 1981–equivalent to a 19-year bull run,”–when the 10-year bottomed out on Sep. 21, 1981. Faber says Dec. 18, 2008 was the peak of the bond bubble with yield of 2.08% and 2.53% on 10-year and 30-year respectively. (See 10-year chart)