I'm glad to see that even finance industry mavens are seeing the light at the end of the tunnel, and recognizing it for an oncoming train. The Telegraph reports:
The boss of a giant US hedge fund manager has warned his investors he now regards the global bond market as “broken” and expects price falls when they come to be “surprising, sudden, intense, and large”.
Paul Singer, manager of the $28bn (£21bn) Elliott Management Corporation fund, said investors were now facing "the biggest bond bubble in world history".
Prices of both government and corporate debt have been driven to new records as low interest rates and central bank responses, such as quantitative easing, have been deployed.
. . .
In a letter to his investors ... Mr Singer said the situation now “is in many ways the most peculiar period we have faced in 39 years".
He expressed amazement that investors would be willing [to] buy bonds at current prices.
He said: “Everyone is in the dark… Experience doesn't count for much, and extreme confidence may be fatal." He added: "The ultimate breakdown (or series of breakdowns) from this environment is likely to be surprising, sudden, intense and large."
There's more at the link. You can read more of Mr. Singer's letter at CNBC.
I've been saying it for years, as have many other independent observers of the market. Mr. Singer's warning comes as no surprise. Batten down the hatches, folks. When it happens, it's going to be a wild ride . . . and with the US presidential elections due in November, the markets might deliver an unplanned and very unpleasant 'October surprise'.