22thoroughbred

ETF Ideas

So how do we play this theme then?

Well, traditionally, most investors can’t sell Treasuries short

1ST. shorting treasuries is extremely easy and not expensive, just call your broker and ask to short a note or bond for whatever timeframe you want, the margin int. rate is cheap and the interest you must PAY the seller of the note or bond is low as well, and with traesuries the leverage can be as high as 10-1, so with $25,000 you can SHORT up to $250,000 of treasuries. So that is not quite accurate. Another issue I have is this, a classic "bubble" is when you buy high expecting to sell to someone else higher, i.e. real estate, tech stocks, etc. I don't see the absure rate on treasuries as a bubble, yes the yield is low, but there are not many people buying treasuries to flip them at a higher price, they are buying because they perceive as safe, not as a trade, so while the yield is low it isn't a classic "bubble" scenerio, so the price can stay high until the perception of other investments being safer begins to come back, so I don't think I would short treasuries to take advantage of a bubble unwind anytime soon. Cogent thoughts?