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Interest rates being near 0% would create the most easily predictable risk of a calamity from investing in long-term bonds. Where else do interest rates go? Goi
by cudgy 4y ago
Interest rates being near 0% would create the most easily predictable risk of a calamity from investing in long-term bonds. Where else do interest rates go? Going negative is not likely to happen for long.
Furthermore, the bond yield was inverted for quite some time (indicating a financial tsunami was on the way) making it even more idiotic to be in long-term treasuries.
Also, building walls against physical forces is a terrible analogy for pressing a button to change your bond ladder risk.