Hello and Welcome back to this new series of companies that I believe will be large beneficiaries of falling interest rates, if that is, my earlier thoughts were correct and Trump will be able to bully the 10-year treasury market to a 3% to 3.5% rate at some point in the first two years of his presidency.
re: the future of the 10yr rate. as a long time admirer of russell napier, i am a believer in the inevitability of financial repression. the process has already begun. e.g. yellen's issuance of t-bills can be viewed as a form of soft yield curve control. changes in regulations have pushed or will push treasury paper into banks, money market funds, pensions, insurers. i fully expect the day will come that endowments as well as personal ira and 401k accounts will be mandated to hold a certain percentage in treasuries. "for our own good," of course. trump can do his best to bully foreign cb's to buy treasuries, but he and congress can FORCE americans and american institutions to do so.
re: the future of the 10yr rate. as a long time admirer of russell napier, i am a believer in the inevitability of financial repression. the process has already begun. e.g. yellen's issuance of t-bills can be viewed as a form of soft yield curve control. changes in regulations have pushed or will push treasury paper into banks, money market funds, pensions, insurers. i fully expect the day will come that endowments as well as personal ira and 401k accounts will be mandated to hold a certain percentage in treasuries. "for our own good," of course. trump can do his best to bully foreign cb's to buy treasuries, but he and congress can FORCE americans and american institutions to do so.
A very real possibility. We live in interesting times