Risk premiums have been squeezed out of nearly every asset class, says Ray Dalio, making a short...


Risk premiums have been squeezed out of nearly every asset class, says Ray Dalio, making a short of bonds (presumably anything but Treasurys) maybe the best opportunity for returns. He's fuzzy on the timing though, other than the later in the year, the better. "He who lives by the crystal ball will eat shattered glass."

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Comments (6)
  • bbro
    , contributor
    Comments (11223) | Send Message
     
    Sell out of the money bond options...
    12 Dec 2012, 04:57 PM Reply Like
  • MohanTX
    , contributor
    Comments (133) | Send Message
     
    BOND dropped by 0.18 %. I guess it is comparatively big drop precipitated by FED Chairman's statements today. I do feel that most of the treasuries are priced for perfection.

     

    BOND is still a hold, as I think economy will expand slowly. We will see what agreement congress makes. Actually sequestration would be good for the bond market...
    12 Dec 2012, 05:01 PM Reply Like
  • bbro
    , contributor
    Comments (11223) | Send Message
     
    We are due for a +100 bps change in yr over yr 10 yr yield...2.50% in July 2013???
    12 Dec 2012, 05:39 PM Reply Like
  • Angel Martin
    , contributor
    Comments (1370) | Send Message
     
    bbro if that's the case, why do you want to sell out of the money bond options?
    13 Dec 2012, 06:28 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1363) | Send Message
     
    Advice please -

     

    Could someone please explain the ramifications of the "bubble" bursting to funds such as JNK, HYG and TIPS?

     

    Thanks in advance.
    12 Dec 2012, 10:21 PM Reply Like
  • Angel Martin
    , contributor
    Comments (1370) | Send Message
     
    Dalio is a really smart guy and i am reluctant to disagree but take a look at this chart of the CRB index.
    http://bit.ly/12obYne

     

    commodity prices didn't get near the previous peak, even with all the central bank balance sheet expansion, and now it is falling. When you have weak economic growth and a disinflation trend it's hard to see a big increase in bond yields.
    13 Dec 2012, 06:44 PM Reply Like
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