Wealthion · Monday, July 13, 2026
Chris Casey advises caution regarding bonds, stating they are currently 'precarious' unless they are short-term (four years or less). He cites two main reasons: the expectation of further rate hikes and, more significantly, historically low yield spreads across different debt sectors, which he believes indicates market complacency.
“Well, our position is that bonds are pretty precarious right now. Anything that's not, you know, fairly short term, let's call it four years or less.”
“And there's two reasons for that. One is I mentioned, I do expect rates to go up from a number of different reasons. That's one.”
“But two though, and I think even more telling, if you look at bond yield spreads across different debt sectors. So look at junk, or corporate. Look at all these different types of bonds relative to the so-called risk-free rate of the US government, and you will find that they're at infinitesimally low levels.”
“You're not getting compensated for taking on any kind of additional risk. And that just shows a lot of complacency still in the bond market.”