Bonds Look Toppy -- 3 Charts

There are always good reasons to buy bonds after a big rally. Today we have the “gravitational pull” of negative interest rates and the frightening prospect of a European banking crisis. But the market is a discounting mechanism, which attempts to look ahead. From a technical perspective, the long bond has qualities of a cyclical top. And after a seventy-year round trip, the secular trend seems nearly exhausted. Is now really a good time to hold bonds?

© Mark Ungewitter Research

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