I guess the money has to go somewhere, but you think stocks will benefit if the Fed starts talking about raising rates?
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
The F-fund chart
http://stockcharts.com/charts/gallery.html?AGG
[Do what you think is right and proper]
I think it is time to go back to F
http://stockcharts.com/charts/gallery.html?AGG
[Do what you think is right and proper]
Louise Yamada is doing a segment on Bloomberg TV/radio, it's been replaying all day. If your a long-term bond holder I suggest you take a peek. It's a great listen.
Retired, 10G/90C_ BLOG: Stats for April, 2024 Stats
Thanks. I bought some TMV a few weeks ago to take advatage of this. It a 3X bear bond ETF. It's in my IRA so I can't short the 3X long ETF (TMF), which I'd prefer since the 3X ETF's are not great for buy and hold.
Here's the link for those interested. http://www.bloomberg.com/avp/avp.htm...u8lwqFO4SA.asf
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
I didn't want to use my last IFT just yet today, but I thought about getting out of the F-fund today now that the yield of the 10-year T-note hit my target of 3.68%.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Rising interest rates and/or inflation are bad for bond prices and cause yields to rise. Basically, think of a dividend paying stock. When the yield is dropping, price is rising (unless it's a crooked bank that cut the dividend of course). When yield is rising, price is dropping. In a perfect trade you want to get into a bond when you believe yields have peaked for a cycle.
Inflation is non-existent in this economy. If Ben and Co. threw a couple trillion of not only mine, but my kids and grand kids futures into a bailout stew so dumb California home buyers can continue to buy GM cars and iPods- and all we're getting is 1.5% YOY rise in food prices- then I can't buy the inflation story.
Bond Link:http://www.businessweek.com/news/201...-update2-.html
Yeah, what bullitt said. The chances are that the Fed won't raise rates (as coolhand said), but I think I would have preferred to take profits in the F-fund just in case they do. As I mentioned, yields have come down this month, hitting my initial target (bonds and F-fund up) so I should be getting out, but didn't want to use that last IFT. If they happen to raise rates Wed., I'd probably be giving back those profits.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
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DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
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