letsmakemoney

Is It Time to Short Bonds?

Everyone is talking about this trade lately (long TBT). The long term reasoning is sound, in terms of the 30yr Treasury yields needing to rise eventually to compensate for the US gov printing presses working 24/7. However, the short term (flight to quality) trend may persist longer than anyone knows. Another way to play the inflation trend is via diversified commodity vehicles such RJI or DBC. The dollar does not need to weaken for commodities to rise, but it would certainly be a tailwind.