Well Known Investors Release Optimistic Views on US Treasuries😀
The jump in bond yields took a reprieve yesterday as a pair of well known investors publicly stated that they have turned less negative on US treasuries at this juncture (more on that later); a quick look at the US/EU/UK's 'government bonds returns over the past 3 years shows the following performance for a supposedly 'safe' risk-less asset:
An average capital loss of ~20% for US/EU government bonds, and 27% for UK points over 3 years (including coupon) seems to be anything but 'risk-free'. While the era of QE/ZIRP had bred a whole generation of "TINA" (There is No Alternative) investors to throw their capital in anything but cash, we are now going through a decade or so of reckoning where the post-party hangover is going to be quite enduring, unfortunately.
