Bloomberg: Thiel betting on 30 year bonds and deflation

[blazespinnaker]

Wow


http://www.bloomberg.com/apps/news?p...TKA&refer=home

Three Wagers

One is that the price of 30-year U.S. Treasury bonds will rise as the U.S. economy slows and deflation sets in. Another is that the dollar will strengthen against the euro as investors scale back investments in emerging markets funded by borrowing dollars. And the third is that energy stocks will keep climbing along with the price of crude as world oil production reaches its zenith.

[Jim Nickerson]

Re: Bloomberg: Thiel betting on 30 year bonds and deflation

The url is to a long article, but one of the more interesting pieces I have read in a while. Recommend reading it. Whether Thiel is right or not, his track record would suggest that his opinions are worthy of consideration.

[blazespinnaker]

Re: Bloomberg: Thiel betting on 30 year bonds and deflation

Thiel: Our view is that volatility has been suppressed across all global markets as a result of the flow of petrodollars into the world economy. Basically, there was a $1 trillion dollar tax increase on oil, and while that's bad for consumers, it's actually been very good for financial markets because the money has basically been this regressive tax that's been reinvested in financial markets: gold, real estate, tech stocks, emerging markets and equities.