Excess Returns · Wednesday, July 29, 2026
Rupert Mitchell expresses a long-standing aversion to bonds, citing a lack of diversification benefits due to the apparent positive correlation between stocks and bonds. He believes this trend will continue, driven by his view that inflation is pervasive.
“I'm going through this exercise this week of, of trying to, um, re-teaming my, um, my, my, my aversion towards bonds.”
“You know, I, I, I'm a notorious, um, bond disliker, um, and have been over, over the last seven years.”
“Largely because I don't see, um, the diversification benefits, um, in a world where, you know, stocks and bonds, total total returns in stocks and bonds appear to be positively correlated, um, once again.”
“And, um, therefore, you know, you are required to make, you know, a long-term bet on what kind of monetary regime we're in, right? And what kind of inflation regime we're in.”
“Um, and, you know, listen, I'm, I'm, I'm, I see inflation everywhere, right?”