Lacy Hunt at Hoisington Management has been a bond bull for three decades and accurately so.
If you are wondering what might change his mind, he explained in a Bloomberg Interview.
The first half hour of our discussion went about as expected. Even though the coronavirus pandemic has led to unprecedented Federal Reserve interventions and fiscal relief efforts, Hunt insisted it was mostly a continuation of what he’s seen for years.
Then, I asked about Modern Monetary Theory and other novel policy ideas, like direct monetary financing. That’s when his tone shifted to what he sees as a “great risk” in the years ahead.