bloomberg.com/opinion/articl…
I suspect the rising stock of -ve-yield debt causes some people to switch to other assets, such as gold.
bloomberg.com/news/articles/…
So far, it's instead showed strong positive beta: bloomberg.com/opinion/articl…
Germany 🇩🇪
France 🇫🇷
Netherlands 🇳🇱
Sweden 🇸🇪
Austria 🇦🇹
Denmark 🇩🇰
Finland 🇫🇮
Japan 🇯🇵
bloomberg.com/opinion/articl…
They have very limited downside. Buy 10-year Swiss government bonds at the current 105 price and hold to maturity paying the current -0.5% negative yield and the worst that could happen (barring Switzerland defaulting) is you lose 10%.
Owning physical gold costs you even more in guarding and safehousing!
As @arpitrage says here, the bond market looks to be in a fixed-income bubble with people investing for greater-fool reasons:
Read the full column here: bloomberg.com/opinion/articl… (ends)