It hasn’t been easy out there for bond investors lately. Long-term U.S. Treasury investors in particular have taken a beating, with the TLT down more than -7% since the U.S. presidential election alone. Such poor performance has led many bond loathing market experts to declare that the bond bubble has burst. Of course, such pessimism about the bond market is nothing new, but such sentiments can be greatly unnerving when heard from highly respected investment experts. In fact, arguably the most legendary investor of all-time, Warren Buffett, has made his disdain for the bond market well known over the years. But even the greatest of investors can fall victim to such hyperbole as throwing around the world “bubble”. Unfortunately for Mr. Buffett, the long-term U.S. Treasury market continues to defy his predictions and has been beating his company for nearly two decades running now.
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