TBT - Proshares Ultra Short 20 year treasury

[papadad111]

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 ...

 

[haha]

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

 

[wingfooted]

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.

 

[LongPrime]

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.

 

[REWahoo]

Never have understood bonds that at short to immediate.

...

sigh. It ain't that complicated. If only people would do some thought analyses.