A few days of weakness, and the world was ready to declare the 40-year bull market in bonds to be over. Not so fast! My view is that this touch of weakness simply sealed up a price gap, and now we’re starting to get some strength again. The big day is exactly two weeks from today – July 31, the last day of this month, when the Fed does their thing.
The anemic global economy is just going to get weaker, and it’s going to demand rates farther and farther into negative territory. I think we’re going to push to new lifetime highs on TLT within the next few weeks.