Lacy Hunt Turns Bearish Bonds: Studying His Reversal

Lacy Hunt Turns Bearish Bonds: Studying His Reversal Authored by Michael Lebowitz via RealInvestmentAdvice.com, Economist Lacy Hunt has been a bond bull longer than most money managers have been in the business. Recently, he made a surprising U-turn on his bullish stance. The following paragraph opens his Second Quarter Review and Outlook. The structural backdrop for U.S. inflation increasingly suggests that the long-run equilibrium range is migrating from roughly1.5–3.5% toward 3.5–4.5%, with a significant risk of episodes of inflation above 5%. An important core reason is the steady erosion of the disinflationary architecture...