Fixed Income Disaster

Will Investors Ever Forget?

Quantitative easing lifted stocks, weakened bonds, and pushed many investors into gold. Will investors ever forget and return to the fixed income markets?

A return to bonds is improbable as long as the same inflationary policies, such as deficit spending, continue to be implemented. Geopolitics exacerbate the bond market's troubles by producing a certain degree of dedollarization. In fact, two shock waves have impacted bonds: deficit spending and geopolitics. Investors chose equities and gold and avoided bonds. Click below to read the full article on the Price Action Lab Blog.