The market is giving you another opportunity to buy LONG BONDS (TLT).
Yesterday, Richmond Fed head Jeffrey Lacker said he sees a "strong case" for raising interest rates. He even suggested rates could rise a lot. The market took him at his word. The 10-year Treasury yield is at 1.69% today.
As you can see in the chart below, with every rate hike freakout (rising yields) it's been a great call to buy bonds. In other words, the Fed has wanted to hike rates all year but we continue to get #GrowthSlowing data. As a result, the Fed takes rate hikes off the table and bond yields fall. (TLT is up 12% year-to-date versus 5% for the S&P 500)
In short, stop hyperventilating. Stick with what's worked all year.
More from Hedgeye:
- Investors should buy Gold. Why? Click here and here.
- The IMF continues to cut its global growth estimates.
