TINA vs BAAA = Bondpacolypse Now

Now that the 10 Yr. Treasury bond has been hovering around 4%, we could be on the brink of a Bondpacolypse Now.

Huh?

One of Wall Street’s favorite acronyms since the meltdown in 2008 has been TINA meaning There Is No Alternative to buying stocks.

But with the recent radical rise in interest rates – the 10 Yr. yield is up almost 200% from the lows last fall – the Sheep are crying BAAA.

Bonds Are An Alternative.

Ironically (or NOT) if all you did for the last decade was follow TINA then you made a lot of money.

And on the flip side, if you’ve been buying bonds with historic low yields then you’ve taken a beating.  Especially since rates have risen so much recently.

But now that rates are somewhat respectable again the Sheep have a voice for the first time in a long while.

And bond devotees will tell you that the cry of BAAA is undoubtedly more tempting than the worn-out battle cry of TINA!

To that we’ll simply say…Not So Fast!

The real question is, do you buy bonds from a government that is so eager to trigger a nuclear war – and overly zealous to “go green” – to the point they’re willing to sacrifice all productivities?

I’m just trying to point out the obvious here.

Bondpacolypse Now…Coming to a Theater Near You Soon

Bonds are a promise to pay back money in the future for borrowing today with an interest rate that covers inflation, risk, and profits.

Would someone please name any bond that meets that criterion today?

Crickets

And what happens when ‘said bond yields’ go above 8% and stays there for 20 years?

Just kidding.

The Govvie Boyz will default long before that.

In today’s environment, buying bonds is like loaning money to a junkie.

And the reckless spending junkies in Congress aren’t about to enter rehab.

Because they don’t want you to know that “Bondpacolypse Now” is upon us.

And all counterparties will be laid to waste.

As a result, money will find solid ground in stocks…mostly because of fear and growing instability around the world.

And we’ll be back on track in The Most Hated Bull Market in History.

Along the way there will be pain in the stock market.

But not as much pain as the bond market offers.

Learn how to prepare for the inevitable outcome in our October edition of “…In Plain English” (HERE).

And share this with a friend…especially if they’re thinking of buying bonds.

They’ll thank YOU later.

We’re Not Just About Finance.

But we use finance to give you hope.

FYI

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