The bond vigilantes, as first coined by Wall Street veteran Ed Yardeni, sniff out government largess, corporate profligacy, geopolitical tremors, and inflation risks long before other financial assets and respond in kind. And by the sheer brute force of its size, bond markets force both the subjects of its wrath, and the investors that rely on them, into submission.
Forget the bond vigilantes. It’s the gold vigilantes you need to worry about.
