Bonds just wanna have fun!

Not all asset classes are struggling today.

Bonds and gold are a natural hedge against difficult times. Gold is currently only 1.3% below the all-time high of $2,468.8 (at closing prices), and during the last session was only 0.24% from its intraday ATH of $2,483.6.

However, bonds (iShares 20+ Year Treasury Bond ETF: TLT) are at a local high and have increased by 7.7% since July 24 - see Figure 1. Figure 2 shows the rate of return on TLT since the bottom of the cycle.

However to really have some fun, the bonds should go to its own ATH, which is some 60% up ! See Figure 3. 😊