Hedgeye CEO Keith McCullough is fond of saying that he is "the most bullish guy on Wall Street... on Long Bonds (TLT)."
Here's analysis from McCullough in a note to subscribers earlier this morning on TLT and why 10yr Treasury yields continue to fall:
"One of the few places to stay long and liquid remains the Long Bond – 10yr UST Yield was -8bps last week and is down another 2bps this morning to 1.82% - this is flattening the Yield Spread to a new cycle low of 110bps (10yr minus 2yr) and that’s one of the main reasons why the Financials (XLF) remain my fav S&P Sector short."
Below is a chart of the 10yr yield post-rate hike...
... And here's how TLT has done year-to-date vs. the S&P 500
Stick with the firm that got it right. We're just getting started.
