30-Year Treasuries Could Outperform Stocks When Fed Pauses Rate Hikes, Strategist Predicts
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30-year Treasury bonds outperform stocks when Fed ends tightening cycles, with 9% returns vs. 7% for S&P 500 according to economist David Rosenberg.
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Rosenberg believes current stock rally is "junky" and lacks fundamentals as Fed nears end of hiking cycle.
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Rosenberg sees signs of economic weakness like lower monthly job gains and 50bps jump in unemployment rate.
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During pause in rate hikes, bonds and stocks rally but 30-year Treasurys significantly outperform.
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Investors take on less risk buying long-term bonds vs. stocks, so outperformance is notable according to Rosenberg.