The End of the Bond Limbo Party (“How low can you go?”)

Limbo PartyWe should always be skeptical when someone claims that “this time is different” in the markets.  New paradigms come around, of course, but not nearly as often as claimed. You’re much safer betting on ”old always” rather than on a “new normal” unless and until the new, new thing has proven out over time and is demonstrable based upon actual evidence and data. 

With that carefully rendered predicate out in the open, it’s worthwhile — and perhaps significant — to note that we will eventually see something truly new in the markets.  We’d all do well to be prepared for when the bond limbo party finally ends. Continue reading