4 ms·
Agreed, long Treasurys has a low reward, high risk setup. Particularly if you believe the inflation narrative.
by quickthrowman 5y ago
Agreed, long Treasurys has a low reward, high risk setup. Particularly if you believe the inflation narrative.
- reducesuffering 5y agoThe risk/reward in isolation isn’t useful, because the market has priced in and bid them up so to their favorable inverse correlation with equities the past 40 years. Assets are priced due to their usefulness in the risk/reward for a portfolio as a whole.
- cudgy 5y agoWho buys long treasuries other than the Fed?
- imtringued 5y agoPretty much every nation that has a trade surplus with the USA, worse it's also possible that a trade surplus between two non USA countries can result in the purchase of treasuries if they transact in USD. I say "worse", because this money can only enter the US economy by making the government run a deficit, if it does not do this then unavoidable unemployment is the consequence.