“Investors continue to desperately pour money into Treasuries despite the massive underperformance. Note how capital consistently flows into the $TLT ETF despite a nearly 50% drop in its underlying price. 60/40 portfolios continue to stubbornly allocate funds to this underperforming asset, hoping for a return to a disinflationary environment. We are currently experiencing a significant macro regime shift, and it will take some time for sentiment and, consequently, positioning in financial markets to adjust accordingly.”
