An interview with Van Hoisington

Hoisington Investment Management, based in Texas, is an interesting investment manager that was recently interviewed by Barron's. They only invest in Treasuries and have been long the long-bond for over 2 decades! (As a side-note, it appears that their website hasn't been updated for two decades either). They have been spot-on with their investment thesis and continue to see disinflationary patterns given high indebtedness in the U.S., low savings rates, low income growth, and a slowing global economy.

Some quotes from the interview:

• No matter where you look, there is a global recession starting.
• We figure 2012 GDP growth will be 0.5% to 1% in real terms, and the core [inflation] rate will be close to zero as we approach mid-year. We wouldn't be surprised to see the 30-year bond trade down toward 2%, and the 10-year at 1.25% to 1.5%...
• The unintended consequences of QE2 were so harmful to the U.S. economy that Mr. Bernanke should tell Congress what University of Chicago professor John Cochrane said he should: That there's nothing more they can do.