Bonds are back. Is it too late to chase the summer rally?
Government bonds are making a comeback in 2024 after a years-long bear market resulted in the longest stretch of price declines in recent memory.
Fund manager bets $2.7 billion on imminent recession
For much of 2024, the stock market has been driven by two seemingly opposite forces: the exceptionally strong performance of the S&P 500 and the biggest, mostly tech companies, and by persistent recessionary fears driven by concerns over a possible artificial intelligence (AI) bubble, consistently high interest rates, and the ever-increasing indebtedness of the Federal Government.
The TLT ETF Looks Ready To Break Out
Long-term Treasury bonds are gaining renewed interest due to potential rate cuts and lower inflation levels. Treasury bonds offer steady income, safety, and hedging capacity in a portfolio. Recent market conditions suggest Treasury bonds, including the iShares 20+ Year Treasury Bond ETF, may perform well in the coming months.
TLT: This Changes Everything
The iShares 20+ Year Treasury Bond ETF had its best week in 2024, and is up over 7% in two weeks. The Fed's shift in focus to labor market followed by a very weak jobs report opens up the potential for aggressive rate cuts into 2025. TLT can be expected to challenge $100-100.5 area and $109 later this year.
Bond funds raked in nearly $400 billion in the first half of 2024
Investors have been pouring into bond funds this year as interest-rate cuts begin trickling out from global central banks.
TLT: Bonds Offer Favorable Odds Now
TLT offers exposure to long-term U.S. Treasury bonds with extended duration. TLT provides a favorable return/risk profile under current conditions. The current inflation data and future contracts both point to lower rates.
TLT: 4 Reasons To Remain Bullish
TLT may face near-term volatility due to inflation and economic data, but long-term trajectory could be impacted by treasuries issuance and demand. Inflation is slowing down, with the Fed conservatively projecting only one rate cut in 2024 if inflation continues trending towards 2%. Recent economic data shows potential weakening, with job numbers and consumer sentiment softening, which could benefit TLT in a hard landing scenario.
TLT Appears To Be Breaking Out
Bullish evidence from technical analysis and fundamental reasons suggest bonds are poised for gains as the economy slows and the Fed leans towards cuts. TLT is a good fund to position for the rally due to its position on the yield curve and high duration. The rally should surpass $100 and could reach $109 at the 2023 high.
Wall Street Is Wrestling With What Happens Next!
Investors know the Federal Reserve WON'T cut rates when this week's policy meeting wraps up on Wednesday. But that doesn't mean the Great Rate Debate is settled.
TLT And SCHQ - Potential Confirmation And Low-Cost Play
Recent economic data supports a bullish view of long-term US bonds. The structural argument for high debt and deficit sustainability driving thesis. Introduction of a low-cost alternative to TLT - Schwab Long-Term U.S. Treasury ETF.
Ruvidar(TM) Enhances Efficacy of Cancer Drug
TORONTO, ON / ACCESSWIRE / June 10, 2024 / Theralase® Technologies Inc. ("Theralase®" or the "Company") (TSXV:TLT)(OTCQB:TLTFF), a clinical stage pharmaceutical company dedicated to the research and development of light and/or radiation activated small molecules for the safe and effective destruction of various cancers, bacteria and viruses, is pleased to announce that in preclinical research, it's lead compound, RuvidarTM, when combined with Bacillus Calmette-Guérin ("BCG"), was able to create a new compound with new synergistic characteristics. In cell-based experiments, the new compound, nicknamed RuBCG, was able to significantly increase the efficacy of BCG in cancer cell kill versus BCG or RuvidarTM alone, when non-light activated.
TLT And TMF: A Timely Tandem For The Bond Market
Long-term treasuries are attractive due to structural economic challenges and signs of inflation relief. Recent negative macro surprises have added fuel to the bull case, while the technical picture has improved. Factors such as declining real-time inflation, a decline in crude oil prices, and double relief from the Federal Reserve and US Treasury support a bullish view on long-term bonds.
