Time to Forsake Stocks for Bonds? Arnott and Arends Square Off [View article]
The Treasury funding needs are so high - read multi-trillion. The Fed has to keep buying the long end to keep the ten-year rates and vis-vis mortgage rates down. Even if one assumes that the long end accounts only for 30% of the trillions coming down the pike over the next year or two, I don't see how the Fed can keep buying.
Time to Forsake Stocks for Bonds? Arnott and Arends Square Off [View article]