Is the TLT ETF a Buy Right Now?

Is the iShares 20+ Year Treasury Bond ETF (TLT) finally a better buy…?

That’s what I’d like to address with you all today.

It’s been a long time since bond yields have been racing higher, and thanks to a hawkish Fed this past week, that’s exactly what’s happening.

Which brings me to my main point of discussion: the risk of being too bearish on bonds and how quickly things can have a mean reversion on the market.

To show this, take a look at the 10-Year Treasury Yield chart.

When looking at the structural inflation we had from the 1940s all that way to the 1980s when bonds and yields went dramatically higher (2%-15%), it took us quite a while to get into a more defined and stable environment that lasted up until a year and a half ago.

Until the pandemic hit.

Ultimately, like back in the early 1980s, we’re likely to see a situation of a mean reversion in the bond yields first.

So, what does this mean for investors?

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