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  • Why TLT May Be The Best ETF Ever [Edit or Delete]2 comments
    May 14, 2012 7:24 PM | about stocks: TLT

    Today TLT surged to $121.24 for a gain almost eight percent in just month.

    Anyone that has read stock_creeper knows that I'm probably the biggest treasury bull on the blogosphere. Since the Dyseconomics article back in May 2011 I have been extolling the virtues of owning TLT as not only as a hedge against volatility and headline risk, but as a global liquidity play.

    Here's one such article

    For years whiny crybaby liberals and paultards have been warning about a 'eminent bursting' of the treasury bubble or that the debt binge was unsustainable, or that foreigners would start dumping dollars, but thankfully their useless warnings have gone unheeded. Policy makers, who tend to more pragmatic and level-minded than bloggers, refer to bond market when assessing inflationary risk, and right now the bond market is signaling to spend with impunity.

    That means we can expect more tax cuts for the rich, more homeland security, more Medicare, more social security, and more defense spending. We're not only in a globalist web 2.0 boom, but a liquidity boom due to huge foreign demand for near zero yielding US debt in backdrop of economic uncertainty.

    Additionally, TLT is a play on government infrastructure and central planning proliferation; more taxable income means more bond purchases though programs like the Social Security Trust Fund. Rapidly developing foreign governments are loading up on treasuries, as are various private and public US institutions.

    Oh and let's not forget that Beranke may begin Q3 and interest rates still still never going up again. It's a low, low rate world.

    Allocating 50% of your portfolio to TLT and the remainder to high growth, globalist stocks & ETFs like PCLN, LNKD, AAPL or QQQ will pretty much guarantee that you wont lose money in down market.

    Stocks: TLT
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This post has 2 comments:

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  • TLT is the appropriate acronym for this pinball machine market.
    17 May, 04:37 PM Reply Like
  • "pretty much guarantee" ....that's funny.
    30 May, 08:29 PM Reply Like
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