Taps Coogan – November 14th, 2023

Hoisington Investment Management’s Dr. Lacy Hunt, is one of the most respected ‘deflationists’ and treasury bulls actively managing money today and had been correctly calling the trend of falling long term treasury rates in the US for decades, at least until a couple years ago.

Despite remaining bullish on bonds during what has turned out to be the worst year for long dated Treasuries in American history last year, Dr. Lacy Hunt remains strongly bullish on long-dated Treasuries:

Dr. Hunt’s position is that the Fed’s policy stance as overly tight and likely to remain so for too long as we head into a severe hard landing, leading rates to drop significantly – particularly on the long end. He does not see the large fiscal deficits getting in the way of that process.

You’ve got to hand it to Dr. Hunt for sticking to his guns despite what must have been a brutal 18 months for his fund. However, your truly can’t help but wonder if that ‘hard landing’ remains a couple quarters out in another couple quarters…