Senior macro trader Common Sense Investor (CSI) forecasts that 2026 will see U.S. long-term bonds outperform stocks, driven by macroeconomic shifts. CSI highlights factors such as the U.S. government's rising interest expenses, deflationary signals from gold, and crowded short positions in bonds as key indicators. The trader has allocated 60% of their portfolio to long-duration U.S. Treasury bonds, anticipating an asymmetric payoff. CSI argues that the U.S. fiscal situation, with $1.2 trillion in annual interest payments, and geopolitical tensions, such as new tariff threats, will push investors towards bonds. The Federal Reserve's potential interventions, like yield curve control, could further support bond prices. With inflation cooling and economic pressures mounting, CSI believes long-term bonds, particularly TLT, offer significant upside potential in 2026.