Around the world, government bond yields are making fresh lows as global growth slows. U.K. gilts and the 10yr Treasury yield hit all-time lows this morning.
Below is analysis from Hedgeye CEO Keith McCullough in a note sent to subscribers earlier this morning:
"We’re seeing fresh all-time lows in the USA’s 10yr this morning (briefly touching 1.40%) – obviously the higher return (especially on a volatility adjusted basis) position, for a year now, has remained long the Long Bond (TLT) instead of US Equity Beta (SPY) and Micron (MU) is just a preview of Earnings Season; risk range on VIX = 14-27!"
That's why, since late 2014, we've been making the call to get long the Long Bond (TLT). It's been the right call. With yields making record lows, TLT is at an all-time high today and has crushed the S&P 500 year-to-date:
S&P 500: +3.0%