Marc Faber and Peter Schiff on the U.S. Treasury Bond Bubble

Interest-Rates / US Bonds
Aug 26, 2010 - 07:57 AM

By: Dian_L_Chu

As I've been saying for some time that the bond market is screaming for an imminent burst, now Dr. Marc Faber and Mr. Peter Schiff also spoke with CNBC on Aug. 23 warning of a bond bubble trouble.

Video at the Link: Marc Faber and Peter Schiff on the U.S. Treasury Bond Bubble
26th August 2010 - 8 minutes

http://www.marketoracle.co.uk/financial ... 9.htm#vid4

Faber - Stay Away from a 19-year Rally

Faber advises investors "stay away from Treasurys as they’ve been rallying since 1981--equivalent to a 19-year bull run,"--when the 10-year bottomed out on Sep. 21, 1981. Faber says Dec. 18, 2008 was the peak of the bond bubble with yield of 2.08% and 2.53% on 10-year and 30-year respectively. (See 10-year chart)



“I think that there isn’t much upside potential in Treasurys unless it’s for the short term. Even the short term is uncertain. But if I look 10 years ahead, where do I want to have my money, then certainly not in US Treasuries.â€