TSX:AX.PR.E - Post by User
Comment by
borne2runon Oct 05, 2023 9:18am
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Post# 35670715
RE:RE:RE:RE:RE:RE:Due for a Strategic Review or Updates
RE:RE:RE:RE:RE:RE:Due for a Strategic Review or UpdatesRe: "Fact is, it's all guessing."
First, I did write "could", not would; even had the word in quotation marks. Rick didn't say what he believes will or won't happen. He referenced his monthly chart, which now has a target in the teens. Short term, the rates are "burning to the upside".
NO, it is NOT all guessing. Rick has been very successful in the bond market for decades. ZIRP was a ridiculous policy, causing all manner of malinvestments. The transition back to some sort of "normalcy" will be very painful. Interest rates declined for 50 years, now they are on their way back up. And Rick's time frame for a peak stretches past the end of the decade. There will be many short and intermediate term cycles within that period.
Companies with good management will adapt and succeed. However, investors must realize that the interest rate tailwind is now a headwind.
While it is possible 5 year rates could hit 2%, the economy would be in deep depression.