Would a smart long term investor sell now and wait for the drop to buy back in? “We will join the rest of them and go to total negative rates in hopes that that will be the solution,” he told CNBC’s “Futures Now” on Thursday. “We’ve never had as many currencies in negative interest rates. $17 trillion worth of bonds [are] in negative interest rates. It’s never existed before. And, that’s a bubble. So, we’re in the biggest bond bubble in history, and it’s going to burst.” https://www.cnbc.com/2019/09/15/ron-paul-us-interest-rates-are-going-negative.html
I don't look to Ron Paul for macro economic advice but I have respect for his position on many things. These are interesting times and it seems absolutely clear that we cannot do the things we are currently doing without something blowing up. I don't know what that means, in terms of magnitude. I just picked up some BB corporate bonds paying 6%. If I could borrow money at 1% and buy BB bonds that pay 5~6%, why wouldn't I arbitrage that to the maximum of my capability?
