Simon Lack spent 23 years at JP Morgan, running North American Fixed Income Derivatives and Forward FX trading for much of that time before founding SL Advisors, a Registered Investment Advisor. His latest book, “Bonds Are Not Forever: The Crisis Facing Fixed Income Investors,” examines the variety of factors that make U.S. Treasuries a bad long-term investment.
According to Lack, a combination of long-term secular trends of the last 30 years has created too much debt to be financed. The public policy response has favored borrowers by keeping interest rates down and thus making bonds “really a return-free asset class”.
Inflation is the real threat: Lack believes it is a bad bet that inflation will not go up and shares thought-provoking insights regarding systemic flaws of inflation statistics.