Why Bonds Now Belong

Why Bonds Now Belong

Share to Linkedin Jim Cramer of CNBC has a saying: "There's always a bull market somewhere. My job is to help you find it!" Rule #5 of Bob Farrell's famous 10 Rules for Investing states: "The Public Buys the Most at the Top and the Least at the Bottom." His Rule #9 says: "When All the Experts Agree, Something Else is Going to Happen." Bond Market Decline in Perspective There is no doubt about it – bonds are the most hated asset class on Wall Street. That's why all the above axioms apply. Bonds are in a 50-year bear market as seen from the downdraft in bond prices in the chart above. Prior to that sell-off, Wall Street had been pointing to the paltry yields bonds were returning to their holders. TINA (There Is No Alternative) was the resulting acronym. We wonder, after the recent run-up in bond yields, if we will be hearing about a new acronym: TIA! The questions that need to be answered about bonds are: 1) Why such a rapid and deep bond sell-off; and 2) What's the likelihood that it can go further? As we've chronicled in this blog since the Fed's March meeting when