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Perhaps you missed it.


This summer offered investors an epic buying opportunity to get long Long Bonds.

Is That Dennis Lockhart's Tail Between His Legs? - 10YR TREASURY CARTOON 08.19.2015

As our subscribers are well aware, we've been warning on global growth slowing and urging investors to get long via TLT and other related vehicles for some time now. It was a non-consenus call when we first made it and we’re sticking with it.

 

Check out the chart below. What a difference a few months can make.

 

Is That Dennis Lockhart's Tail Between His Legs? - keith twitter 10yr

 

Make no mistake, our recent macro calls — #Deflation, #GrowthSlowing, #LowerForLonger and one of our newest ... #SuperLateCycle — have been spot on. Is it possible that Old Wall consensus is warming up to our thinking?

 

Look no further than a slew of media stories yesterday. CNBC, Bloomberg, and a host of others are featuring front-page stories on themes our macro team has been warning about for some time now.

 

Is That Dennis Lockhart's Tail Between His Legs? - deflation

 

The icing on the cake? In this morning's paper Wall Street Journal Fed watcher Jon Hilsenrath delivered a beauty of a headline

 

Is That Dennis Lockhart's Tail Between His Legs? - hilsenrath 3

 

Just. Beautiful.

 

Hopefully you recall that just two months or so ago in a WSJ interview with Atlanta Fed President Dennis Lockhart, Lockhart suggested that the Fed was "close" to a rate hike in September. See headline below.

 

Is That Dennis Lockhart's Tail Between His Legs? - hilsenrath 2

 

Close? Weeeell...not so much.

But thanks for the update Jon.

 

As for us, we'll stick with our #LowerForLonger call.