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The sovereign bond market has become one of the most contested allocation decisions of the year, and JPMorgan chief executive Jamie Dimon added his weight to one side of that debate this week.
Dimon warned that long-term Treasury bonds are not a good buy, even if equities sell off. By the time he said it publicly, many investors had already come to the same conclusion.
The call, stated plainly Dimon's message was direct: duration is not the refuge it once was. His caveat about stocks matters.
In past cycles, a flight from equities reliably pushed money into long-dated government paper, compressing yields and rewarding holders. That reflex, Dimon appears to be saying, should not be assumed this time.
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