Van Hoisington commentary

[valuecfa]

Van Hoisington December update:

 

http://www.hoisingtonmgt.com/pdf/InterQuarterUpdate20101209.pdf

[StubbleJumper]

I see that they're sticking to their previously expressed views on long term treasuries. "Four percent nominal rate, one percent current inflation, therefore treasuries will rise over coming months/years." 

 

These guys are way smart, so they know about the central importance of inflation expectations and they know that the current year's inflation means bugger-all for a long term treasury.  Despite QE2, they still seem to think that deleveraging will drive low inflation or disinflation.  Interesting.

 

Let's see what Prem & co do.

 

SJ