The following article is an excerpt from a recent Premium Edition of the True Vine Letter.
Interest rates have begun an upward long-term trend
My long-term views on interest rates and the bond market are:
- Interest rates are going to continue to rise, albeit with strong countertrend rallies that could sometimes last several years.
- Higher quality corporate bonds will outperform government bonds due to the extreme levels of government indebtedness and general fiscal mismanagement (at least in the United States).
The following monthly chart of the 10-year US treasury bond goes back to the early