April 18, 2017

Inflation in US economy to continue | Sell Bonds

US Stocks seem to be expensive, but Fixed Income instruments may be even more expensive and the most overvalued asset class. The recent decline in Bond yields and their rise in price might be the last best opportunity to sell. 

According to Doug Kass, 
"Short of an economic recession, bond holders are almost guaranteed bigly losses over the next decade as we are now set on a likely path to lower bond prices and higher bond yields."
Further Doug Kass, says we have already seen a bottom in generational Bond Yields. He expects a slow and steady rise in Bond yields thru the year 2022. Any bond holders of today would suffer losses surely unless there is a stock market correction.