, Columnist
The Bond Pit and the Pendulum
As equities soar and government debt falls, Treasuries will become attractive again.
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Everyone is trying to comprehend just how much the world has changed this week, including Wall Street traders.
In the days after Donald Trump was elected U.S. president, stock markets had their best week in two years and bonds suffered more than $1 trillion of losses. The main narrative behind the move was that Trump would spend more money to build roads and bridges, generally spurring growth and long-awaited inflation. That's good for stocks and bad for government bonds.