The central bank's QE program has effectively turned the US Treasury market into a Ponzi market', says Scott Minerd, global CIO at Guggenheim Partners. Minerd's argument is that the Fed's bond-purchasing program has introduced false confidence into the market as investors believe Treasury investments will continue to increase in price. Just like a Ponzi scheme, the value of Treasury assets has become disconnected from its underlying value. The longer the expansionary policy, the more volatility-inducing pressure it will build. He expects stock and bond markets to be in for a rough ride over the next six months. (VIEW LINK)
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