This latest US debt downgrade is a buying opportunity for us contrarians. I say that because we had the same (profitable) setup the last three times the ratings agencies took Uncle Sam’s credit rating down a peg. You might find that last sentence surprising. Three times? Indeed, the US government has seen its debt downgraded on three different occasions: 2011, 2023 and most recently a couple of weeks ago. You can be forgiven for not remembering all of these: In some cases (2023 comes to mind), they didn’t really make headlines. In others, they set up a small dip in…

The financial markets in 2025 have been a whirlwind of volatility, with the stock market battered by economic policy shocks and the bond market grappling with its own turbulence. The 10-year Treasury yield, a critical barometer of economic health, has oscillated between approximately 4.0% and 4.47% this year, injecting unprecedented volatility into a market typically known for its stability. For bond investors, the chaos stems from a volatile mix of aggressive policy moves, resurgent inflation fears, and a looming fiscal crisis—culminating in the House passage of the controversial One Big Beautiful Bill Act. As the Senate debates this transformative legislation,…