Is there anything out there not going up in price, I mean other than U.S. Treasury Bonds?
Stocks are making new highs. Precious metals are underperforming, as usual, but at least they’re trying to push up against new absolute highs.
Looks like the Bond bulls are just throwing in the towel:
For me, this makes perfect sense.
There is very clear evidence of appetite for equities and other risk assets. So there is little need for the defensive nature of Treasury Bonds.
If we’re below 155 in $TLT, the path of least resistance for bonds is lower.
Higher rates, rotation into Small-caps and Financials…
For me, all of this comes along with lower bond prices.
And that’s exactly what’s happening.
Remember, U.S. Treasury Bonds are an important component of our First Team All-Defense. So that’s what we will continue to monitor.