The low-for-long era is over.
Central banks, fiscal activism and populism pricked the bond bubble in 2016. Next year will be a lot worse for bond investors, and the aftershocks of the burst will spread across many other assets.
Since the crisis, investors have been buying bonds for capital gains and equities for yield, trusting in the holding hand of easy monetary policy. However, today the central bankers’ hand is no longer there.
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