Sun setting on emerging market bonds

Sunset i

Once seen as the hero of the investment community, emerging market bonds have completed 5 waves up from the Oct 2008 low, which is in turn a 5th Wave of a larger degree. This 5th wave up was fueled by the Federal Reserve cutting interest rates to zero, which in turn gave rise to a…

US Treasuries point to deflationary times ahead

Hot air balloon deflating

If we take a look at the long term US 10-yr Treasury Chart we can see that ever since the rampant inflationary period of the early 1980s the 10-yr yields have been in a downward trend. Since hitting an all-time low of 1.4% in Aug 2012, yields have more than doubled, touching its long-term trendline…