As global bonds lost another $1.2 trillion in value over the past week, Welt’s Holger Zschaepitz took to Twitter on September 25 to proclaim the bursting of the bond bubble as the total losses of bonds exceeded $12.2 trillion.
Catching up to the Fed
Investors are nursing large losses as they’re trying to catch up to the US Federal Reserve (Fed) outlook on rates, which seem to indicate another round of aggressive interest rate hikes. These moves have forced currency traders to prop up the US dollar, actively forcing a run out of other assets. Meanwhile, CaxtonFX chief strategist Michael Brown stated that besides the Fed’s strategy, everything else in the market is simply noise at this point, as he expects the sell-off to continue.
Bleak outlook
Famous macro investors like Ray Dalio and Stanley Druckenmiller have been warning for some time of broader markets taking a plunge due to global macro stress, and in a way, their calls are being vindicated at the moment. Across the globe, the growth outlook seems bleak, and market participants would be best served by patience and vigilance in a potentially protracted bear market. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
