A couple of weeks ago I mentioned Albert Edwards' bullish views on US Treasuries. The interesting bit was his prediction that 10-year Treasury rates would exceed 3% before long. He is basically saying, 'first the meltdown, then the melt-up'. That's the exact opposite of Ray Dalio is saying about equities, by the way. So I thought I would highlight Edwards' thinking given he has released an update.
Myth: Equities and Bonds move in opposite directions
You would think that Ray Dalio's view goes hand in hand with Edwards'. After all, the common saying is that equities and bonds move in opposite directions. When bonds are up, equities are down and vice versa. But that's not really true.
We've had the greatest bull market in bond market history since the early 1980s. Yields of nearly 16% plumm...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.