Jawboning the bond market has not worked. This does not mean that the plan to buy more Treasuries won’t help the fixed income market to some degree, but it is raising questions about whether some of the stop gap plans that have been implemented since the GFC are losing their effectiveness.
We understand why many investors feel the need to “keep dancing”…but we also believe that they should consider buying some cheap insurance against a decline as we move into hurricane season…because that insurance can frequently become very expensive, very quickly.
