I bought TBT at an average cost ot 41.40. It is currently (today) slightly above water, at which I am a little (pleasantly) surprised. My thinking was and is, that interest rates cannot go much or any lower. At some point, possibly 1-2 years from now, inflation is going to kick in and the Fed wil have to raise interest rates. Then TBT should go up. I am prepared to wait. If TBT does go below my average cost, I will probably buy some more, as I still believe that it must eventually go up, because as of today, the Fed only has .25 percent room to lower interest rates. Is there any thing wrong with this scenario ?
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I bought TBT at an average cost ot 41.40. It is currently (today) slightly above water, at which I am a little (pleasantly) surprised. My thinking was and is, that interest rates cannot go much or any lower. At some point, possibly 1-2 years from now, inflation is going to kick in and the Fed wil have to raise interest rates. Then TBT should go up. I am prepared to wait. If TBT does go below my average cost, I will probably buy some more, as I still believe that it must eventually go up, because as of today, the Fed only has .25 percent room to lower interest rates. Is there any thing wrong with this scenario ?
Jan 08 02:31 am
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All Comments by ewr »Losing Trades: When to Double Down [View article]