Peter Schiff Says The Asset Everyone Calls Safe Is Down 50%, What Does Bitcoin Do Now?

In Brief

• Peter Schiff says holders of the world's safest debt are down 50%.
• TLT fell to $81.89 Friday. It peaked at $179.70 in March 2020.
• Adjusted for inflation, the real loss is closer to 65%.

Peter Schiff has put a number on the bond market’s damage. The iShares 20+ Year Treasury Bond ETF (TLT), built on the world’s safest debt, fell to $81.89 on Friday.

That is a fresh 52-week low. The fund peaked at $179.70 in March 2020. It has now lost more than half its value.

iShares 20+ Year Treasury Bond ETF (TLT). Source:

The Safest Trade in Markets Lost Half Its Value

TLT holds US government bonds maturing in more than 20 years. None can realistically default. The Treasury backs every one. So the risk was never that America stops paying. The risk was interest rates.

Bond prices fall when yields rise. This fund feels it harder than almost anything.

TLT carries an effective duration of 14.9 years, according to iShares. In plain terms, a one point rise in yields costs roughly 15% of the price.

TLTFixed Income iShares 20+ Year Treasury Bond ETF Portfolio Characteristics. Source:

The real damage is worse than Schiff’s number. The fall from $179.70 to Friday’s low works out at 54%.