Why TLT Will Always Go Up, Even in a Bull Market [Edit or Delete]0 comments
Jan 7, 2012 2:01 PM
For 2012 I'm bullish on all asset classes ranging from stocks, commodities, treasuries, and minis.
These liberal perts like Peter Schiff, Bill Gross, Meredith Whitney, and Gerald Celente keep predicting an economic collapse due to supposed hyperinflation due to unsustainable debt or China turning up their noses to US debt. Yet the 10 year yield is persistently below 2% , a 33% decline from April 2011 yields. Even with dow 14000, oil $130, and gas $4.5 I predict the 10-year won't crack 2.75%. This makes the liberal libertarians irate because they want to see economic hyperinflationary collapse, and it simply refuses to happen. lol
Any bet against treasuries is doomed to fail. As the global economy booms treasury purchases via foreign governments, US government, institutional holders increases, providing downward pressure on yields to compensate for the inflationary effect of a stock market rally. The net result is treasuries fall only slightly as stocks surge. On the other hand, if stocks fall and the economy goes into a double dip treasuries will rally due to the flight to safety trade. Furthermore, the Fed is set to buy $300 billion more Treasuries in 2012. It's a low, low rate world.
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Why TLT Will Always Go Up, Even in a Bull Market [Edit or Delete]0 comments
These liberal perts like Peter Schiff, Bill Gross, Meredith Whitney, and Gerald Celente keep predicting an economic collapse due to supposed hyperinflation due to unsustainable debt or China turning up their noses to US debt. Yet the 10 year yield is persistently below 2% , a 33% decline from April 2011 yields. Even with dow 14000, oil $130, and gas $4.5 I predict the 10-year won't crack 2.75%. This makes the liberal libertarians irate because they want to see economic hyperinflationary collapse, and it simply refuses to happen. lol
Any bet against treasuries is doomed to fail. As the global economy booms treasury purchases via foreign governments, US government, institutional holders increases, providing downward pressure on yields to compensate for the inflationary effect of a stock market rally. The net result is treasuries fall only slightly as stocks surge. On the other hand, if stocks fall and the economy goes into a double dip treasuries will rally due to the flight to safety trade. Furthermore, the Fed is set to buy $300 billion more Treasuries in 2012. It's a low, low rate world.
buy TLT, UGA, DIA, QQQ, GOOG, MA, V
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
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