U.S. bond markets are spooked by inflation. Our Chief Options Strategist, Nick Piquard, was on BNN Bloomberg this week to discuss what this could mean for investors.
With the 30-year U.S. Treasury yield recently reaching its highest level since 2007, Nick pointed out that the recent bond selloff could be an opportunity for investors to rebalance their portfolios. Since equities have been surging, investors may be interested in using those gains to buy bonds at a discount and reach their ideal asset allocation.
He also explained that the high volatility in the U.S. Treasury market is an attractive environment for active covered call strategies, as it leads to higher option premiums. Bond market volatility, as measured by the MOVE Index aka the “VIX of bonds,” is up over 20% in the past month[1]. Investors looking to monetize this volatility to provide higher monthly income might consider our Hamilton U.S. Bond YIELD MAXIMIZER™ ETF (HBND) and the Hamilton U.S. T-Bill YIELD MAXIMIZER™ ETF (HBIL).
During the wide-ranging interview, Nick weighed in on Nvidia, which just announced yet another quarter of blockbuster earnings that beat analyst expectations. Whether or not it can continue to clear the high bars being set, gross profits should be a deciding factor in whether any tech stock is worth owning, says Nick. Nvidia’s gross profit was $61.1 billion in the latest quarter, more than double what it was a year ago.
“Nvidia has been a fantastic performer, fantastic stock,” said Nick. “The way that we look at technology stocks, we want to own stocks that generate the most gross profits, and Nvidia is one of those names.”
Investors can find other high earners by looking through company reports, using stock screeners, or consider owning the HAMILTON CHAMPIONS™ U.S. Technology Index ETF (QMVP), which holds 25 of the most profitable U.S. tech companies with balanced allocations to avoid overconcentration. QMVP helps investors gain exposure to tech firms with proven products and business models that may stand out in what is being considered a frothy market.
Nick also touched on retail giant Target, whose stock fell this week despite a Q1 earnings beat. He highlighted that the company has consistently raised its dividends over the last 25 years despite economic downturns. That’s what qualifies it to be one of the constituents in the highly selective HAMILTON CHAMPIONS™ U.S. Dividend Index ETF (SMVP).
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[1] ICE BofA U.S. Bond Market Option Volatility Estimate Index (MOVE). Since April 20, 2026, as of May 20, 2026. Source: Bloomberg