Here’s a great observation I read recently from Jonathan Baird of the Global Investment Letter. He notes that investor allocations to bonds have plunged to near a 40-year low, right as the U.S. Treasury ramps up its reliance on short-term debt to finance soaring long-term yields.
It immediately brought me back to one of the worst buy-the-dip events in modern ETF history in which the iShares 20+ Year Treasury Bond ETF (TLT) dropped 40% in value, but its assets doubled from around $19 billion to $38 billion. All within about two years’ time.
