Bonds face biggest bear market in almost 40 years

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I was working on an article and then this interesting Bloomberg TV interview crossed my desk. Billionaire hedge-fund manager and Bridgewater Associates founder Ray Dalio said that the bond market has slipped into a bear phase and warned that a rise in yields could spark the biggest crisis for fixed-income investors in almost 40 years. Well, this is the guy who runs the biggest hedge fund in the world.

If you recall, a couple of weeks ago both Bill Gross and Jeff Gundlach, two of the most famous bond fund managers, spoke of the prospect of a bond bear market coming. Bill Gross refined his call by writing how the bond bear had actually begun post-Brexit in 2016.

This stuff is crucially important for financial markets, as interest rates are the well spring from which all other market trends arise. Rising interest rates trigger recessions and bear markets.

So what the heck are you supposed to do now? For those who love short-term action, keep selling those bond rallies.

Here is the VIDEO.              

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