PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ) Reaches Oversold Levels
RSI Comparison: The PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ) has an RSI reading of 29.1, indicating potential overselling, while the S&P 500's RSI is at 53.4.
Investment Opportunity: A bullish investor may interpret ZROZ's low RSI as a signal that selling pressure is waning, suggesting a possible buying opportunity.
Performance Metrics: ZROZ's 52-week low is $61 per share and its high is $75.0599, with the last trade recorded at $65.13, reflecting a 1.5% decline on the day.
Author's Disclaimer: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
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Analyst Views on ZROZ

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- Bond Market Performance: The bond market experienced its best year since 2020, surprising income investors who were losing hope.
- Future Outlook: Despite some emerging risks, the outlook for the bond market in 2026 remains positive.

Bond Market Outlook: Bank of America's chief investment strategist, Michael Hartnett, suggests that the bond market is currently undervalued, with potential for a rally unless significant fiscal stimulus is introduced by Washington. He identifies three key factors supporting lower yields: market positioning, macroeconomic deterioration, and policy changes.
Investor Sentiment: The latest Bank of America Global Fund Manager Survey indicates that investor sentiment is at its highest in over three years, with a significant shift towards equities and commodities, while cash allocations have dropped to their lowest since 1998.
Contrarian Investment Strategy: Hartnett advocates for a contrarian approach, favoring long-duration assets like zero-coupon bonds and mid-cap equities, rather than following the prevailing risk-on sentiment in the market.
Political Risks: Hartnett warns that political decisions, particularly regarding fiscal stimulus, could undermine his bond market predictions. He highlights that increased fiscal measures could lead to higher inflation and interest rates, reversing the current outlook for lower yields.

RSI Comparison: The PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ) has an RSI reading of 29.1, indicating potential overselling, while the S&P 500's RSI is at 53.4.
Investment Opportunity: A bullish investor may interpret ZROZ's low RSI as a signal that selling pressure is waning, suggesting a possible buying opportunity.
Performance Metrics: ZROZ's 52-week low is $61 per share and its high is $75.0599, with the last trade recorded at $65.13, reflecting a 1.5% decline on the day.
Author's Disclaimer: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.

Political Implications of Inflation: If consumer prices drop to 2%, President Trump's approval rating could rise above 45%, potentially benefiting Republicans in the 2026 midterms, according to Bank of America strategist Michael Hartnett.
Investment Opportunities: Hartnett recommends contrarian investors consider long-dated Treasuries, specifically the PIMCO 25+ Year Zero Coupon U.S. Treasury ETF, which may perform well if long-term interest rates decline.
Government Intervention Risks: Lower inflation could lead to government intervention in price control, which may negatively impact profit margins for companies in sensitive sectors, as the administration seeks to maintain affordability.
Sector Performance Outlook: Investors are advised to bet against sectors that typically thrive in high inflation, such as energy and housing, as these may struggle if inflation cools and pricing power is constrained.

- 52 Week Range: ZROZ's stock has a 52-week low of $61 and a high of $79.14, with the last trade recorded at $67.39.
- Market Analysis: The article suggests checking other ETFs that have recently fallen below their 200-day moving average.
- Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.
- Investment Insight: The information provided may be relevant for investors tracking ETF performance and market trends.

Global Rate Cuts: Central banks worldwide have made 312 rate cuts in the last two years, mirroring the 313 cuts made in the two years following the 2008 financial crisis.
U.S. Economic Growth: During this period of monetary stimulus, the U.S. GDP has grown by 11%.
Market Commentary: Bank of America’s chief investment strategist, Michael Hartnett, notes that the current asset market commentary is dominated by themes of "booms, bubbles, and debasement" due to extensive monetary stimulus.
Investment Recommendations: Hartnett's recent recommendation to buy zero-coupon U.S. Treasury bonds has proven to be a successful strategy since the summer.




