By Lawrence G. McMillan
Bond ETF’s (IEF and TLT) are both making all-time highs (in price). Stock volume patterns are very strong. This is the point that all the stock market bulls (especially on CNBC) seem to miss: yes, government bonds are yielding small interest rates, but if you own them, they are rising in price as the yield falls. In the last year, IEF (the Barclays 7 year - 10 year bond ETF) is up 15% in price, and TLT (the 20-year bond ETF) is up 35%!!! So what if they only yield 1.6% and 2.7%, respectively? This point is rarely made on television, and as a result, they are implying that stocks are a better place to be. This can be extremely misleading to the average retail customer...
The full Bond Rant article will be published in tonight's edition of The Option Strategist Newsletter.
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