Good Politics Is Bad Economics – Ep 803
The Peter Schiff Show Podcast
00:00
Novo Business Checking - The Enemy of Bonds
Bond yields have been falling with inflation expectations rising. The more inflation you have, the more purchasing power is eroded in bonds. Bond investors should demand higher rates to compensate them for the loss of purchasing power due to higher inflation. Except what the bond investors are factoring in is that the fed is going to get more aggressive to fight an even larger inflation threat. And ultimately, that recession is going to result in lower, not higher, long term interest rates. I think the stock market is also factoring in the same thing.
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