'We believe that long-term interest rates can continue to rise substantially from current levels,' says hedge-fund manager Bill Ackman.
The bond market is in turmoil, bond funds are plunging, and long-term interest rates just hit their highest levels since the Bush administration.
In his latest letter to investors in his Pershing Square fund, Ackman warns that long-term interest rates could easily rise another 27% from here. That would entail a fall of about 10% from here in 10 year Treasury bond prices, and would almost certainly plunge the stock market into turmoil and threaten real estate as well.
Whether he’s right is another matter. Ackman’s argument is based on two separate things. The first is that the Fed will have to accept a higher rate of systemic inflation than it wants. The second is that in future buyers of Treasury bonds will demand a higher “real” rate of interest, meaning a rate of interest above inflation.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Retirees, watch out: Long-term interest rates could rocket, warns this legendary fund manager'We believe that long-term interest rates can continue to rise substantially from current levels,' says hedge-fund manager Bill Ackman.
Les mer »
The New Bill to Repeal DC Home Rule Is One Sentence LongIt could strip the voting rights of 700,000 people, dismantle a 36,000-person government with a multi-billion dollar budget, put Florida and Wyoming senators in charge of your plumbing and trash—and it’s only one sentence long. Earlier this month, three House Republicans introduced an attention-grabbing bill to Congress that would repeal DC Home Rule, a federal
Les mer »
47 Genius Products You'll Probably Wish You Bought A Long, Long Time AgoBut now's your chance to make future you glad you grabbed these game-changing products when you did.
Les mer »
Whipping Egg-Whips: Retirees Are Winning Battles Against Medicare AdvantageIn a country inundated with ads falsely praising the benefits of MA plans, it is amazing that grassroots organizations have cut through the gibberish, exposed the lies, and are fighting to keep their traditional Medicare with promised supplementary coverage.
Les mer »
Terry Savage: High rates for how long?When interest rates were quite low just a few years ago, savers were actually punished for having chicken money. Inflation was higher than safe money savings rates. But as of this writing, you can get 5.5% on a six-month Treasury bill.
Les mer »