Buy US Treasury Bonds (via TLT ETF), Says Charlie Morris

Charlie Morris of ByteTree is an investment analyst, and is not taking political sides, but thinks the incoming Donald Trump administration may do a better job managing inflation and the US dollar than the market currently thinks – in which case, investing in long-term US Treasury bonds (via the iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT)) would be a good idea. Treasuries took a hit when Trump got elected, on fears that tariffs, mass deportation (of low-cost labor), higher government spending, and lower taxes would drive up inflation, which is bad news for bonds – Nouriel Roubini, for instance, thinks long-term US bonds will go down.

But Charlie is optimistic, and explains why in this video. He also discusses why he’s bullish on emerging markets and Europe (including the UK, where he’s based), and his views on energy.

Here’s Riverside.fm’s AI summary of the discussion points:

1. TLT represents a long-term risk-free asset investment.
2. Interest rates have significantly impacted bond performance recently.
3. Inflation is stabilizing, but not returning to low levels.
4. Emerging markets are becoming more attractive for long-term investments.
5. UK investments face challenges due to political and energy policies.
6. Deflationary pressures are being exported from China.
7. The bond market could provide a hedge against stock market volatility.
8. Investors should seek diversification beyond US stocks.
10. Political changes could lead to a balanced budget in the US.


More from Charlie at:

https://bytetree.com
https://bytetreeresearch.substack.com/

More from BBAE at:
https://bbae.com