snake driver

The Riskiness of Bonds

I think I have been learning that painful lesson with SRS over the past few weeks. IYR goes nowhere, but SRS goes into the toilet bowl. What's the use of being right about real estate if you can't make money from it?

The Riskiness of Bonds

Happy New Year folks,

Chris B said:

"If I was to do anything, I would short treasuries using ETF's like TVT and PST (yes Felix, retail investors can easily short t-bills). After all, can treasuries really get any more expensive than offering a near-zero yield? Yes, we could be in for a Japanese scenario for a decade, but overpriced treasuries seem to be the only certainty."

This seems like airtight logic to me. If treasuries have nowhere to go but one direction, how could one go wrong with Chris B's strategy? Can anyone describe a scenario in which Treasuries go the other way?