Since Donald Trump won the election on November 9th over $3 trillion has left the bond market.
I’m sure it’s nothing to worry about (sarcasm emoji).
In fact, we should just check in with Donald Trump on Twitter to see what he thinks…
The world was gloomy before I won – there was no hope. Now the market is up nearly 10% and Christmas spending is over a trillion dollars!
— Donald J. Trump (@realDonaldTrump) December 26, 2016
The snarky person in me would say Donald Trump does not care what interest rates do because he never pays his debts.
The nitpicker in me has the S&P up 6 percent since the election and during the Obama presidency the Dow (which Trump is using as his market gauge) is up 285 percent.
Unfortunately, the bond market dwarfs the stock market and it seems to be taking notice of Donald Trump and his bankrupt habits.
I think it’s important to at least consider that the secular bull market in bonds (started in 1981) could end or has ended. Bond yields have now done something they have NOT done in 35 years.
Here are TWO of charts that will put the bond market boom of the last 35 years in context:
I love seeing stocks go up, but old people will be opening their brokerage statements in two weeks and continue to lose their mind over their bond losses.
I doubt the bond market collapses, but I know that Donald Trump is not the guy I want pushing the buttons if it does.
Also published on Medium.