Repeat: Get Your Money Out Of Bond Funds – NOW

This article was in Bloomberg News today:

There’s a bigger risk “that when the the Fed starts hiking in earnest, outflows from high-yielding and less-liquid debt will lead to a free fall in prices,” JPMorgan strategists led by Jan Loeys wrote in a June 20 report. “In extremis, this could force a closing of the primary market and have serious economic impact.”

Bond Market Has $900 Billion Mom-and-Pop Problem When Rates Rise

It’s just like I said (video link), BlackRock is leading the charge, there’s a massive derivatives blow-up coming at some point and there will be capital controls placed on bond funds.

Don’t say you have not been warned.   And move your money in to physical gold and silver.

8 thoughts on “Repeat: Get Your Money Out Of Bond Funds – NOW

  1. Hello,
    Do you think Inflation-Linked Bond/TIPS would be in danger?
    How would this type of bonds react to the events?
    Many Thanks!

    1. If you are in a TIPS fund they might. Get your money OUT of the fiat US dollar-based assets. Foretold is forewarned.

  2. But the problem is that the Fed wouldn’t hike rates. QE and low rates would stay for ever. Then what do you think would be the trigger to cause the bond fund disaster?

    1. Derivatives blow-up. Big bond funds are riddled with hidden derivatives. I know a guy who’s firm did the study. Plus a vice chairman of BlackRock – Barbara Novick – is going around pressing for a regulations which would bail out DTCC in the event of a big counterparty OTC derivatives trade. That tells us a derivatives accident is coming

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