US gov. debt market collapse has started
This has MASSIVE implications for the economy
A thread 🧵
2/ US government bonds have broken below a 40-year uptrend
After experiencing one of the most aggressive bear market since the 1980s
3/ Treasury bonds, typically 40% of an investor's portfolio, have led to significant losses because of their sharp decline
4/ Since March 2020, gold has outperformed Treasury bonds by +100% amid surging government spending
Government expenditures have risen from $3.4 trillion to almost $4 trillion in just 2 years
5/ Constantly rising government spending, financed by issuing more Treasury bonds, is a BIG problem
This has caused bond prices to drop significantly
6/ Treasury bond issuance in 2024 is expected to hit $1.9 trillion
This level is higher than even the peak of the 2008 Financial Crisis levels
7/ Although we expect a bounce in bonds, our long-term outlook on it is bearish
You can find our latest Watchlist and all our Trade Setups with at:
bit.ly/GameofTrades
8/ A key factors that’s driving this long-term breakdown in Treasury bonds is the decline in labor force participation rate
This metric has shown a strong negative correlation to US government debt since 1999
9/ The decreasing labor force participation + increasing government debt indicate economic strain
This is because of more people retiring and fewer people working
The combination has required the government to increase its spending
10/ With the aging US population and more people retiring
Labor force participation is likely to decline further
This would increase government debt even more, unless spending changes
11/ That’s why Gold has seen a lot of bullishness
Surging +35% since Oct 2023
Our members have already secured a 22% gain on $GDX when we booked partial profits on 23rd May
And continue to hold the rest for more upside
12/ You can check all our 2024 closed trades for FREE on our landing page
It's been a solid year for our members with an average win of 16.92% and average loss of just 3.93%
13/ Join us now for just $1.45/day to access our real-time Trade Alerts with full details:
- Long/Short position
- Allocation weight
- Entry
- Stop-loss
- Reasoning for the trade
bit.ly/GameofTrades
14/ Thanks for reading!
If you enjoyed this thread, please ❤️ and 🔁 the first tweet below
And follow @gameoftrades_ for more market insights, finance and investment strategies
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.