The Bond Vigilantes Are Back & Rejecting The Fed | Jim Bianco

Despite the confidence Federal Reserve Chair Jerome Powell is doing his best to project, inflation has not yet been slain.

And today's guest expert, Jim Bianco, founder of market research firm Bianco Research, thinks it's going to continue to prove problematic as the return of the "bond vigilantes" increasingly undermines the Fed's efforts.

We'll talk about his reasons why, as well as his concerns about the current extreme valuations in stocks, and why if they experience a material correction, bonds may not provide the protection to portfolios they did in the past.

Follow Jim at:

#bonds #inflation #bondvigilantes
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[ptupy]

What is this guy talking about? US manufacturing has been in contraction territory for two years. Take away the massive deficit spending, and the house of cards would collapse.

[lopezjuanjl]

He seems to be a rational person, please bring him in more often

[maurasmith-mitsky]

Amazing brainpower on this show. 👍🏽👍🏽👍🏽

[annKLR]

Thank you Jim for coming on and sharing, I feel like the curtain was drawn back on a new world view. So helpful.

[michaeleisenberg]

Jim Bianco is my number one to listen to. He has been my "number one" since I first heard him post-pandemic. He has been correct on inflation, interest rates, the post-pandemic shift in employment, etc., etc. He always tells it the way he sees it, IMHO. I'd like to hear from him again as soon as possible.

[knightybee]

Jim Bianco has been spot on with his bond call for awhile.

[mydressmemos]

The market and the Fed consistently underestimate the sticky nature of inflation. The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $465k worth of stocks?

[MarkMark-jits]

Yeah 3% inflation, groceries have doubled, insurance up 20%, rents taking 50% of pay yeah yeah 3%

[lukeearthcrawler]

Another wonderful and thoughtful interview, Adam. Fantastic guest.

[miguelleiva]

Jim is one of the few I actually pay attention to. Like I've been saying for over a year 3, 4 % inflation world

[waleedabdellatif]

Excellent interview. Some smart remarks about speculators

[jeffsurfanderson]

I don't have to push back on that George Gammon came out with a video a week or two ago showing that during the GFC when they dropped rates the long Bond went up almost 100 basis points and also in 2001 when they cut rates

[draymond]

Tell jim US economy is only alive from 7% budget deficits....few seem to grasp this

[oscarbizzozero]

Great interview. Jim gave a lot of ideas on how to invest for what is coming. Thank you, Adam. Please, bring Jim to the program more often.

[bersig]

I lived through the 70s and 80s. (Graduated HS in '82) Back then everyone was saying bond yields couldn't possibly go over 10%.. over 12%.. over 15%. They absolutely can go to whatever makes the bond vigilantes come back to the table. I would not be AT ALL surprised to see 10yr yields at over 20% this time. Even more if Congress can't get government spending under control. They nearly went there in '81, and back then we didn't have nearly so much debt. In '81 the yield on the 10 year peaked at over 15%. 30 year fixed-rate mortgages went over 18%, and stayed over 10% for most of a decade. It CAN happen, and it will happen because "this time it'll be different". They said that back then too.

[JSS]

Excellent what a wealth of free information Jim’s knowledge is amazing

[begelston]

Jim Bianco's arguments make a lot of sense; very useful discussion, thank you! Also, I think the Fed lowered interest rates (when it would not have otherwise) for the Government since ~1/3 of the national debt is rolling over this year.

[stevesmith]

At one point I was critical of Jim, and can now see more clearly that I was wrong. Jim is not only smart (there is plenty of that), but more importantly has a good grasp of real mechanisms that produce value. There is so much emotion and bias in the markets when stocks, bonds, real estate, etc. are valued. Many commentators we listen to are only looking at today's rises/falls and say you should own ____. So many are simply parroting common narratives (sad and useless).
Good luck all.
Thanks Jim.

[dtrout]

Jim's perspective on the market pricing in too much innovation and profit for the near term .... Seems right to me. One of Jim's best assessments IMO.

[trevordowney]

Jim Bianco - "It's not hard to beat inflation" What's inflation Jim? What the government tells you it is??? Give me a break. Maybe say instead "it's not hard to beat the CPI number." If he thinks inflation is 3%, he's delusional.