SoYouThinkYouCanInvest

Bond Expert: Wednesday Wrap

The Fed Will Buy All Treasury Bonds in Existence if Necessary . Sound far fetched? It’s not. Bernanke said so himself in 2002.

The Fed absolutely believes that it can keep Treasury bond rates down all across the yield curve. They will do this by enforcing a ceiling on yields across the maturity curve. They believe that they can do this by buying only a small portion of outstanding bonds but if that does not work they are not sunk. In 2002, Bernanke said “At times, in order to enforce these low rates, the Fed [in the years before the Federal Reserve-Treasury Accord of 1951] had actually to purchase the bulk of outstanding 90-day bills.” Therefore, the Fed plans to buy as many bonds as necessary to enforce their policy. If the market does not respond with a small number of purchases, they will just keep on buying until they are the only buyer left. We are talking about the purchase of trillions upon trillions of securities.

So that’s the next step - the enforcement of a ceiling on treasury bond yields and the purchase of unlimited bonds if necessary to accomplish it. You have been warned.

For more please read my extended piece on the subject:
soyouthinkyoucaninvest...

FOMC Statement, Redacted Version

The Fed Will Buy All Treasury Bonds in Existence if Necessary . Sound far fetched? It’s not. Bernanke said so himself in 2002.

The Fed absolutely believes that it can keep Treasury bond rates down all across the yield curve. They will do this by enforcing a ceiling on yields across the maturity curve. They believe that they can do this by buying only a small portion of outstanding bonds but if that does not work they are not sunk. In 2002, Bernanke said “At times, in order to enforce these low rates, the Fed [in the years before the Federal Reserve-Treasury Accord of 1951] had actually to purchase the bulk of outstanding 90-day bills.” Therefore, the Fed plans to buy as many bonds as necessary to enforce their policy. If the market does not respond with a small number of purchases, they will just keep on buying until they are the only buyer left. We are talking about the purchase of trillions upon trillions of securities.

So that’s the next step - the enforcement of a ceiling on treasury bond yields and the purchase of unlimited bonds if necessary to accomplish it. You have been warned.

For more please read my extended piece on the subject:
soyouthinkyoucaninvest...

Treasury Selloff: We May Be Approaching Bailout Limits

Take a look at the 1 year chart for TLT(20+yr treasury ETF): finance.google.com/fin...

Right now it is at 108. I posted back on the 11th that I think it falls into the 80s: soyouthinkyoucaninvest...

Shorting is one thing, but at the least get the heck out of long term treasuries. High risk with little upside.

Gold Shares ETF Inventory Reaches 800 Tonnes

If you are that worried about having GLD taken by the US Government then consider CEF (Central Fund of Canada). This ETF holds 58.5% gold, 37.9% silver and 3.5% cash, with the bullion stored in a vault in Canada. Visit their site: www.centralfund.com/. Expenses are .43% compared to GLD's .40%.

Bond Expert: Wednesday Wrap

The chart for TLT (20+ year treasury bond ETF) looks very very bearish. I made a post about it last week and it just might be playing out: soyouthinkyoucaninvest...

Time will tell.

ETF Update: New Asia ETF, Commodity ETFs, Base Metal Prices

I added up to date charts and data for commodity ETFs and ETNs to my website. GLD (Gold), LD (Lead), NIB (Cocoa) and BAL (Cotton) all look strong.

Take a look at soyouthinkyoucaninvest...

I also compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google docs spreadsheet that everyone can view and download.

Take a look at soyouthinkyoucaninvest...

Despite Economic Headwinds, Gold Will Outperform

I added up to date charts and data for commodity ETFs and ETNs to my website. GLD (Gold), LD (Lead), NIB (Cocoa) and BAL (Cotton) all look strong.

Take a look at soyouthinkyoucaninvest.../

I also compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google spreadsheet that everyone can view and download.

Take a look at soyouthinkyoucaninvest...

Agricultural Commodities on Sale

I added up to date charts and data for commodity ETFs and ETNs to my website. GLD (Gold), LD (Lead), NIB (Cocoa) and BAL (Cotton) all look strong.

Take a look at soyouthinkyoucaninvest.../

I also compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google spreadsheet that everyone can view and download.

Take a look at soyouthinkyoucaninvest...

Gold Breakdown

I added up to date charts and data for commodity ETFs and ETNs to my website. GLD (Gold), LD (Lead), NIB (Cocoa) and BAL (Cotton) all look strong.

Take a look at soyouthinkyoucaninvest.../

I also compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google spreadsheet that everyone can view and download.

Take a look at soyouthinkyoucaninvest...

U.K. Toxic Bank Plan: More Gains For Gold

I added up to date charts and data for commodity ETFs and ETNs to my website. GLD (Gold), LD (Lead), NIB (Cocoa) and BAL (Cotton) all look strong.

Take a look at soyouthinkyoucaninvest.../

I also compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google spreadsheet that everyone can view and download.

Take a look at soyouthinkyoucaninvest...

Five Low-Priced ETFs

I added up to date charts and data for commodity ETFs and ETNs to my website. GLD (Gold), LD (Lead), NIB (Cocoa) and BAL (Cotton) all look strong.

Take a look at soyouthinkyoucaninvest.../

I also compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google docs spreadsheet that everyone can view and download.

Take a look at soyouthinkyoucaninvest...

Commodity ETF Overview

I added up to date charts and data for commodity ETFs and ETNs to my website. GLD (Gold), LD (Lead), NIB (Cocoa) and BAL (Cotton) all look strong.

Take a look at soyouthinkyoucaninvest.../

I also compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google spreadsheet that everyone can view and download.

Take a look at soyouthinkyoucaninvest...

A Guide to Commodity ETFs and ETNs

I compiled a complete list of all the commodity ETF and ETNs available to US investors as well as detailed data on each and saved them in a convenient google spreadsheet that everyone can view and download. Commodity types include precious metals, base metals, agriculture, energy and livestock. Note that I have only included those ETF and ETNs that track the commodity prices themselves, and not ETF and ETNs that track commodity based companies and also omitted leveraged ETFs because I do not recommend their use.

To get the list go to soyouthinkyoucaninvest...