Bob Michele, who in April told investors to enjoy the ride in risk assets, is now looking to ride U.S. Treasury yields “all the way down to zero.”
For 10-year notes “I think that’s where we’re headed over the next couple of years,” Michele, the chief investment officer and head of global fixed income at JPMorgan Asset Management, told Bloomberg TV on Thursday. “The rally in bonds hasn’t even begun yet.”
Central banks will succumb to threats from the global trade war to tepid inflation and cut borrowing costs to nothing, according to Michele. His colleagues on JPMorgan Chase & Co.’s advisory side made a similar call this week, saying the global pile of negative-yielding debt is becoming a tar pit that will eventually suck in the U.S. government bond market.
We are already witnessing the greatest credit bubble in history and it’s only going to get worse as cheap fiat flood the World’s Markets. However, this is going to have severe consequences.
The Great Recession is a term that represents the sharp decline in economic activity during the late 2000s, which is considered the most significant downturn since the Great Depression. The term “Great Recession” applies to both the U.S. recession, officially lasting from December 2007 to June 2009, and the ensuing global recession in 2009. The economic slump began when the U.S. housing market went from boom to bust, and large amounts of mortgage-backed securities (MSBs) and derivatives lost significant value.
That’s when Bitcoin was born…after the demise of the financial markets in 2009. Satoshi once said on an online forum back in 2009 the following:
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”
So don’t worry that Bitcoin is declining, if you buy now you will be handsomely rewarded as the financial markets evidentially collapse.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.