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Bond investors are running for the exits a record high 62 billion dollars was withdrawn from bond funds and ETS jets this month.
And while the ten year treasury yields -- take a look at this three month chart how much the yield on charges up that's because prices have plunged.
And here's a three month chart of -- TF the -- follows the ten year treasury pretty closely and look at what's happened at a price and how much just down the past three months.
Not to worry.
Matt Miller of JHS Kaplan byters.
A wealth manager out there and -- has always bond bubble talk this kind of exaggerated that now's a good time to invest in treasuries and joins us now out of tell us why thanks for being with us -- go ahead make your case everyone out there a lot of people think there's a big bond bubble why you say there -- Well -- -- look at it did what we've -- is a very reasonable response in the treasury market over the last five years we haven't seen anything like a parabolic move which characterizes bubbles.
That we had seen both in golden house prices in the U -- And when you look at the incoming data and it and that treasury market.
The treasury market this year for the ten years down about 5%.
That's after a five year including up to June appreciation of about 20% so.
If you were talking about numbers like a hundred or 200% appreciation in treasuries you might consider that a bubble I don't consider 20% over five years a bubble.
-- map but we started the year 2013.
With the ten year at one point 78%.
Yield and now -- 2.5 five that's basically -- up 40%.
In -- increasing yield and decline in prices up 40% move doesn't strike -- a bubble.
While it's a 40% move in the yield that they're Dennis remember it's a 5% move in price it's not that substantial in the ten year.
If you look back historically if the worst.
Period of time that we I've had in my career which was in 1980 through 1982.
You have the tenure go up four and a half percent and a diversified portfolio of bonds in that period actually appreciated 11%.
Right so and I'm not saying that you people should run out by the tenure of the thirty year here.
Though Bill Gross this morning in a comment.
Basically said that he considers much of what's going on a panic and he said remember that in an emergency.
When you find somebody -- in a panic you should yell at them now I'm not gonna yell you -- us.
But this is my version of yelling which is people should just keep calm keep a diversified portfolio of stocks and bonds.
And in your bond portfolio make sure that you've got diversification between -- mortgage backs and other tried the other forms of bonds.
Rather than just focus on the thirty year treasury as your benchmark.
All right -- we appreciate -- being with us we've got to -- now but but we were looking at somebody TF on the case -- -- -- take a look at you might consider guys held QD tip.
AG GE MB in the mutual club on can -- -- quite Matt Miller could dating is sir thanks offer -- thank you very much balance.
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