Aw, Phooey! Even *I* Can Make Money on Bonds?!

A Hyuck! Is the Sky Really Falling?

Oh boy oh boy! It's your pal Donald Duck reporting live from… well my comfy armchair. Seems like all the fancy pants folks on Wall Street are flapping their wings about Treasury yields. But hold on to your hats folks because Michael Hartnett from Bank of America is saying we should actually *buy* those long duration U.S. government debts! Can you believe it? It's like Goofy trying to fly a kite in a hurricane! But he calls it 'Buy Humiliation sell Hubris,' which sounds like something Uncle Scrooge would invent to squeeze a penny out of Gladstone Gander!

5%? That's More Than I Get for Saving Acorns!

This Hartnett fella thinks that the 30 year bond yielding over 5% (a number I haven't seen since… well since I last paid my taxes!) is a real “cyclical buy opportunity.” He says these bonds are in the same stinky situation as stocks back in '09 and commodities in '18. And guess what? Those turned out to be great times to buy! Who knew? Maybe I should start investing instead of just yelling at Pluto!

Tariffs Debt and a Fed That's Cutting Rates? What a Mess!

Apparently everyone's been souring on bonds 'cause of things like tariff induced inflation (thanks to that Trump fella) the fiscal mess in Washington (those politicians spending money like I spend on sailor suits!) and the Federal Reserve cutting interest rates. The 30 year yield is up almost a whole percentage point since they started cutting rates. It's enough to make even *me* lose my temper! And you know how bad THAT can get!

All Hat and No Cattle?

Hartnett says that this is all because of the "all hat and no cattle" tariff policy and that politicians are just trying to reduce debt as a percentage of GDP. Honestly it sounds like a lot of blah blah blah to me. But the point is he thinks that a 30 year bond yield above 5% is a great deal because… well because losing the long end isn't a winning strategy. And because high bond yields are bad for the U.S. economy so the bond vigilantes are gonna step in and punish all that unsustainable debt!

So Are People Actually Buying This Stuff?

Believe it or not investors actually *did* put money into bonds over the past week! Apparently $25 billion flowed into the asset class with investment grade fixed income getting the most love since September. Who knew everyone was so interested in bonds even after the tariff debacle? Maybe Uncle Scrooge is behind this…

What Should YOU Do? (Says a Duck!)

Well folks I'm just a duck not a financial advisor. But if even *I* am considering investing in bonds maybe just maybe there's something to this. So grab your piggy banks do your research (or ask Uncle Scrooge for advice – if you can get past his money bin) and good luck! And remember what I always say: "Aw phooey!" … but maybe not this time!