Robert Kessler of Kessler Investment Advisors was on WealthTrack this last weekend defending bonds. He takes the contrarian view that the bond bull isn’t over yet. His defense:
- Nothing has really changed in recent years to force yields higher.
- Deflation remains a higher risk.
- De-leveraging continues.
- The economy is actually weaker than it was in 2012.
- Inflation is lower than it was in 2012.
Kessler says the 10 year Treasury bond should yield about 1% above the rate of inflation and that means the risks to yields at present are to the downside. See the full interview here: