Long-term bond chart looks scary.
Standard & Poors downgraded US debt late last year and the effect so far has been laughably counter-intuitive.
“I’m not a policy maker, I am a steward of other people’s capital and I’m here to outperform.”
Now, 10 years later, the fund is beating all rivals and assets have surged to $15.6 billion
“The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.”
Pimco’s flagship fund Total Return has been buying Treasurys again
Remember ye the dark days of late 2007 when it first became apparent that the stock market’s new highs were lying to us and that only the bond market was telling the truth?
Will the dollar be bought on the news – or sold?