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Paco Ahlgren
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Visit Paco's blog: PacoAhlgren.com (http://www.PacoAhlgren.com/) Follow Paco on Twitter: http://twitter.com/pacoahlgren Paco Ahlgren is an Austrian economist and has worked as a financial analyst for eighteen years. His expertise ranges from stocks, options, and futures, to interest rates and... More
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  • Treasuries Are Falling With Stocks 1 comment
    Dec 15, 2009 4:38 PM | about stocks: TBT, TMV
    In the nearly two decades I've been following markets, I have watched Treasuries move inversely to stocks. In the last year, however, the trend has shifted and now -- more often than not -- Treasuries and stocks seem to move together. Today is a perfect example of that changing relationship.

    Equities are riskier than government bonds -- or so the theory has gone. But the climate lately would suggest that investors no longer see the same quality in Treasuries they once did.

    I've been writing a lot about coming inflationary price-increases -- stemming from easy credit and unprecedented currency creation. The fact that Treasuries are slipping with stocks, at the same time commodities are hovering at new highs tells me a lot about the direction we're  heading.

    The U.S. is running out of credit and cachet. Treasuries and the dollar are acting precisely as they should, considering the changing financial landscape. The future does not look bright...


    Disclosure: Long TBT, UCO, and gold
    Themes: Treasuries, gold, oil, silver, agriculture, commodities, dollar Stocks: TBT, TMV
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    Great article as always, Mr. Ahlgren. Treasuries are junk bonds in the long run. Question. What do you think of zerohedge.com? I really like their stuff. Almost everything they write is peppered with cynicism, but it's usually very good information.
    26 Dec 2009, 11:21 PM Reply Like
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