Colin Lundgren Quotations

We're getting to levels now where to buy bonds you have to subscribe to the notion that the economy's going to experience a slowdown and the Fed may have to reverse course later in the year. We don't subscribe to that.

We're approaching levels in rates at which you'll start to hear more and more chatter about asset allocation trades, away form equities and into bonds. At or above 5%, bonds look interesting.

Trading is light and at such times prices can get bullied.

We expect the Fed to focus on the risks to higher inflation caused by higher energy prices, supply-chain disruptions and the strain on resources resulting from the massive rescue, relief and rebuilding effort now underway.

We expect the combination of solid economic growth and higher inflation risks to push the Fed to raise rates higher than is implied by prevailing bond yields.

Foreign investors will still get a lot of yield comparatively in the U.S., so we could see them buying.

The last 14 Fed meetings have been anticlimactic. The Fed came, they saw, they tightened and told us to expect more of the same. Looking ahead, things are starting to get more interesting. The outlook for economy now is less certain.