Many retail investors tune out the bond market, and Terranova doesn’t understand why. If it’s a matter of learning the basics, as Nike would say, “just do it.”
“Historically, Treasurys lead the stock market; they’re a reliable barometer for anticipating where the equity market is going to be three months from now,” Terranova said. "If you begin to see Treasury yields decline, that means there is something out there that is concerning. Big investors are moving money into Treasurys to seek out safety."