Why You Should Short Bonds

There are three reasons why bonds would have a great return if you short them. They are as follows:

• The credit risk of most bonds (including sovereign bonds) is high - especially compared to their respective ratings.
• Interest rates are currently artificially low, and when they eventually rise - prices will fall (bond yield and price have inverse relationships).
• Bonds are denominated in currencies. Currencies, such as the USD, will lose a lot of value in the coming times (due to Keynesian monetary policy).

All these ideas are from Doug Casey, and he has a proven track record of being right on the condition of the economy and where it's headed.