Catherine Austin Fitts-Don’t Blame Trump for Ending the Bond Bull Market

One of the big headwinds for Trump is the bond market and rising interest rates. Financial advisor Catherine Austin Fitts contends, “The long term bull market in bonds is at an end, and rates are going to rise and continue to rise as they should. Savers, pension funds and insurance companies are not getting a return on their capital. To me, this is a welcome. If you are holding a big bond portfolio, they are going to be down, but interest rates are going to rise and the party is over. We have a President who understands the cost of capital and is screaming that it is no longer zero. To a certain extent, you are watching all of Washington blame Trump for the end of the debt birth model. It’s not his fault. He’s just trying to get the culture to switch to reflect something to where the future is going.” Fitts, who has managed hundreds of billions of dollars of assets as Assistant Secretary of Housing in the Bush Administration (41), says the stock market could blow up to a “Dow of 30,000 or crash down to 10,000.” Fitts tells all her clients to hedge for any scenario and “hold a core position in gold.”

 

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