Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
TBT - Proshares Ultra Short 20 year treasury
Old 05-14-2014, 09:28 PM   #1
gone traveling
 
Join Date: Oct 2007
Posts: 1,135
TBT - Proshares Ultra Short 20 year treasury

Interest rates were "supposed" to rise last October with the start of Fed tapering. Many people poured money into bond short funds, which rise when interest rates rise (and bonds drop). Those folks are looking at some significant losses, especially if in a leveraged type of ETF.....

So now my question....with bonds once again hitting 7 month highs / yields hitting 7 month lows, is it NOW time to start accumulating the short bond funds / leveraged short bond funds ?

I am tempted...hitting 52 week lows...5 year chart is a downward ski slope...and seems to been at the bottom for quite some time. A decent longer term investment?

I run a 75/25 equities to bond ratio -- but have been in cash instead of bonds due to the terrrible bond yield. Thinking to take a portion of that 25% cash and putting it into TBT ...
__________________

__________________
papadad111 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-14-2014, 09:58 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Quote:
Originally Posted by papadad111 View Post
I am tempted...hitting 52 week lows...5 year chart is a downward ski slope...and seems to been at the bottom for quite some time. A decent longer term investment?
Read carefully in the prospectus the risks of short or ultra-short funds. For technical reasons that you must understand before investing, they are not good long term or even intermediate term speculations.

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 05-16-2014, 10:30 AM   #3
Recycles dryer sheets
wingfooted's Avatar
 
Join Date: Jul 2011
Location: Oregon - Dry Side
Posts: 218
Quote:
Originally Posted by haha View Post
Read carefully in the prospectus the risks of short or ultra-short funds. For technical reasons that you must understand before investing, they are not good long term or even intermediate term speculations.

Ha

You are correct for leveraged ETF's - not a good vehicle for anything except a short term (less than a month ) trade.

But certainly the OP could make a valid longer term trade by simply shorting TLT.
__________________
wingfooted is offline   Reply With Quote
Old 05-16-2014, 11:01 AM   #4
gone traveling
 
Join Date: May 2014
Posts: 153
Never have understood bonds that at short to immediate. Yields are bad and the risk is high due to US politics and Global influences. Bank rates stink and but safe. For my money, I use my local gas utility (4.15%) and play the seasonal price movements and exdiv dates. But you can't be too active in trading since trading costs will eat into the total yield vs cash. I will be a net buyer in the next couple of months on price dips of 2.0- 2.5%. Can get about 8% total return/yr without taking too much risk, and able to go long or short or hold cash.
__________________
LongPrime is offline   Reply With Quote
Old 05-16-2014, 11:12 AM   #5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,134
Quote:
Originally Posted by LongPrime View Post
Never have understood bonds that at short to immediate.
...
Quote:
Originally Posted by LongPrime View Post
sigh. It ain't that complicated. If only people would do some thought analyses.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Reply

Tags
bond, bonds, tbt, treasuries, yield


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Lightning in Ultra-slow motion RonBoyd Other topics 9 07-29-2010 02:32 PM
30 year bond ETF - TLT & TBT SierraRaven FIRE and Money 8 09-12-2009 09:48 PM
Ultra short-term bond funds safari FIRE and Money 32 11-20-2007 08:44 AM
Ultra Conservative Retirement Planners smileydog FIRE and Money 48 04-07-2007 05:40 PM
The Recovery and the Ultra Wealthy Marshac Other topics 49 09-13-2005 06:15 PM

 

 
All times are GMT -6. The time now is 02:38 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.