September 20, 2022

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Highly Flawed Narrative

Please click here for a chart of long bond ETF TLT.

Note the following:

• Bonds move inverse to the yield.  As yields on short duration debt have risen, the yields on long bonds have not kept up.  The reason is that inflation expectations over 20 – 30 years are low.  In The Arora Report analysis, these low inflation expectations over the very long term will likely turn out to be wrong.  
• The chart shows that TLT has fallen below the support.