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!"
https://twitter.com/KeithMcCullough/status/748847676083544065
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:
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TLT: +16.5%
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S&P 500: +3.0%