Hoisington Quarterly Review and Outlook

This week John Mauldin presents the quarterly Hoisington Review and Outlook.  This quarterly review is one that I never miss and offers great insight.  Van Hoisington and Dr. Lacy Hunt of Hoisington Investment operate the Wasatch-Hoisington US Treasury fund.

Here is the PDF version of the newsletter.

• Based upon the historical record of effects of excessive and low quality indebtedness, along with the academic research, the 30-year Treasury bond, with a recent yield of less than 3%, still holds value for patient long-term investors. Even when this bond drops to a 2% yield, it may still have value in relation to other assets. If high indebtedness is indeed the main determinant of future economic growth and further government “stimulus” is counterproductive, then a prolonged state of debt induced coma may so limit returns on other riskier assets that a 30-year Treasury bond with a 2% yield would be a highly desirable asset to hold.