Are higher interest rates and lower bond prices a sure thing for 2025? Mainstream financial pundits say yes.
Which gives us thoughtful contrarians pause. Their narrative against bonds is assumed. When this happens, markets tend to move in the opposite direction of conventional wisdom.
Which means we should bet with bonds. At least in the near term to start the new year. Let’s watch bonds rally and surprise everyone except for us. The “Trump is bad for bonds” trade may eventually be correct, but my hunch again is that this “surefire” call is early.
For all the recent commotion, the 10-year Treasury yield bounces between 3.3% and 5%, with an even narrower 3.6% to 4.7% range recently.… Read more
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