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An outstanding chart (via InterestArb) shows the gaping chasm that's opened up between the U.S....

An outstanding chart (via InterestArb) shows the gaping chasm that's opened up between the U.S. employment picture (not so terrible) and Treasury yields. Priced as if nothing will ever go right in the economy again, Treasury prices may one day look down to see they're far out past the cliff's edge. Things are going a bit right this morning, and the long bond yield is up 5 bps to 2.76%. TLT -1.1%.
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Comments (3)
  • PalmDesertRat
    , contributor
    Comments (2940) | Send Message
     
    bot some tlt today at 124.89
    6 Sep 2012, 10:57 AM Reply Like
  • Iceberg
    , contributor
    Comments (20) | Send Message
     
    What's your rationale?
    7 Sep 2012, 12:12 AM Reply Like
  • PalmDesertRat
    , contributor
    Comments (2940) | Send Message
     
    I trade positions. I set a position limit for each security and then trade within that limit. recently it's worked out well,particularly yesterday. I sold a number of equities and put some of the proceeds in tlt.

     

    my strategy has worked well over the long term,although not always on a daily basis.

     

    with the market up I've been a net seller of equities and a net buyer of tlt,cash,and inverses. i'm still net long overall in equities but my goal is to reduce my portfolio's volatility as the market rises. when we get a correction I'll do the opposite. hopefully at that time the fear will push tlt up so I can sell at a profit and buy my equities back at lower levels.
    7 Sep 2012, 08:00 AM Reply Like
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