Thread: tsptalk's Market Talk

Originally Posted by tsptalk

Was it this guy?...

http://www.thegapguy.com/

Sorry that's not it, maybe lady has it or I posted a link over at ETF talk, I'll check this weekend.

market future looks up tonight

Curious, why are stocks and bonds tracking together? I thought they were supposed to be inverse investments...

The markets are trying to keep you confused.

Originally Posted by Birchtree

The markets are trying to keep you confused.

That's not hard to do. That's ok RMI, we're both in the same boat.

Originally Posted by RealMoneyIssues

Curious, why are stocks and bonds tracking together? I thought they were supposed to be inverse investments...

As opposed to bond yields and bond prices, which always move inversely to each other, stocks don't always move inversely to bonds.

It is just that bonds are used as a safe haven when stocks are being hit, and when stocks go up, people sell bonds to get into stocks. That's why you see a strong tendency for them to move inversely.

But there are times when they will move together, like if the economy is stalling and the Fed is trying to stimulate the economy by lowering rates. Investors like it and you are likely to see stocks and bonds rally on that kind of news.

I wrote a little about it last week...

http://www.tsptalk.com/comments_arch...ts_5_3_11.html

So, other than going with a Bull and a Bear ETF combo, are their other inverse pairs I can use?

I'm not sure I understand. A bull / bear combo of stocks and bonds ETF's? What are you attempting to do hedge your account or are you looking for one ETF for longs, another for shorts?

Originally Posted by tsptalk

that sure is some nice lookin lineage you got there.

Originally Posted by tsptalk

I'm not sure I understand. A bull / bear combo of stocks and bonds ETF's? What are you attempting to do hedge your account or are you looking for one ETF for longs, another for shorts?

Bull / Bear ETF combo (long / short)
Stock / Bond ETF combo (typically go opposite, until recently)

Are there any other opposing pairs of investments that can be used?

Thats probably as clear as mud...