So what was supposed to be a bumper year for the bond markets has actually seen its gains all evaporating after The Donald took the elections.
The market value of Bank of America’s Global Broad Market Index, which tracks more than 24,000 bonds around the world, has slumped by $1.14 trillion this week to $48.1 trillion. The only previous week it fell by more than $1 trillion was in June 2013, when the Federal Reserve under Chairman Ben Bernanke was threatening to reduce debt purchases, leading to a bond selloff that became known as the “Taper Tantrum.”
With Trump at the helm of the most powerful nation in the world, and the uncertainty circled around his future governing style, I feel that we will only see worst days ahead for the foreseeable future for the bond markets. What say you?
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