The only bad thing about TBT is that you're short Treasuries against dollars. You really want to be short Treasuries against gold. You'll still make money, just not as much. Or you could buy TBT and use it as collateral for shorting the dollar to hedge out the exposure TBT gives you. But you'll have to pay your broker's margin rate instead of the ridiculously low rates most funds can get. Since the dollar is losing value at a rate greater than 60% per year, paying 4% or so shouldn't be too bad.
There can be no such thing as a gold bubble; gold is the standard of value. What you're really saying is that the dollar will crater. Wouldn't surprise me, given how incompetent these central bankers are. Your average kindergarten student could do better.
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The only bad thing about TBT is that you're short Treasuries against dollars. You really want to be short Treasuries against gold. You'll still make money, just not as much. Or you could buy TBT and use it as collateral for shorting the dollar to hedge out the exposure TBT gives you. But you'll have to pay your broker's margin rate instead of the ridiculously low rates most funds can get. Since the dollar is losing value at a rate greater than 60% per year, paying 4% or so shouldn't be too bad.
Dec 20 22:55 pm
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All Comments by bearfund »Serial Bubbles: Now It's Bonds [View article]
There can be no such thing as a gold bubble; gold is the standard of value. What you're really saying is that the dollar will crater. Wouldn't surprise me, given how incompetent these central bankers are. Your average kindergarten student could do better.