Jim Bianco predicts the end of the 40-year bull market in bonds and a transition to a multi-year bear market

Jim Bianco, a renowned expert in the bond market, suggests that the 40-year bull market in bonds came to an end in 2020, marking the start of a multi-year bear market. While there may be short-term rallies along the way, Bianco anticipates that interest rates will continue to rise. He believes that the current level of interest rates is not yet high enough to trigger a significant economic downturn, and that rates could go even higher in the future. Bianco emphasizes that the average interest rates before the QE period were similar to the rates we are seeing now, and he argues that we are simply returning to a more normal state rather than experiencing a new normal.