A subscriber asked how the ongoing debt ceiling showdown will impact bonds. Keith McCullough says instead of using day-to-day headlines to predict bond performance, just use our Risk Range™ Signals.
“When Janet Yellen announced it’s closer to June 1 than July 1 or August, you’d say, ‘Oh, the debt ceiling is positive for bonds.’ Yesterday, because bonds don’t work for you, you’d say, ‘Oh, it’s negative for bonds,’” McCullough explains in this clip from The Macro Show. “So, what does it mean for bonds? Just stay within range. Then you don’t have to get the answer.”
McCullough adds: “The answer everybody wants is specifically when, where, how, why. I don’t care about most of that. I care mostly about when. If the 10-year yield is at the top end of the range, I’m going to buy bonds. If gold’s down, I’m going to buy gold. The answer’s much simpler.”
Watch the full clip above.
