ProShares UltraShort 20+ Year Treasury (ETF)
Think rising interest rates are around the corner? So does everyone else. At near-zero, rates have only one way to go: up.
Positioning yourself for rising rates isn't easy. Some say the best way to play higher rates is in complex ETFs like ProShares UltraShort 20+ Year Treasury ETF (NYSEMKT: TBT), which tracks inversely (and then doubles!) the change in daily Treasury prices. Shorting treasuries will make you money more »
Conservative investors often seek safety by putting their money into U.S. Treasuries. But that move might be the equivalent of financial suicide. Here's why.
The Simple Argument
Now, a 1.75% 10 year bond might seem risk-free. Its yield more »
George Soros and his theory
Yesterday night I was watching some interviews with top investors during Davos 2013. One with George Soros particularly interested me. He made several remarks on his famous reflexivity theory, which basically states how the interpretation of events can actually affect those events. He made a connection between his theory and the future trajectory of U.S. interest rates. Soros defended the way U.S. Federal more »
This is the $41 trillion dollar question now isn’t it? China cut their benchmark lending rate for the first time in 4 years on Thursday and now everyone is asking whether that will be the trend which will begin to stabilize the world economy. In Barron’s latest heavy-hitter roundtable Bill Gross of PIMCO pointed out that policy makers in the U.S. are at the end of their more »
“The real glory is being knocked to your knees and then coming back. That's real glory. That's the essence of it.” - Vince Lombardi
I've been focusing more and more attention on Japan lately as the Nikkei appears to be recovering and as animal spirits return to equity markets. There appears to be a growing possibility that the markets are moving away from “risk-off” investments and into investments more »
ProShares UltraShort 20+ Year Treasury (NYSEMKT: TBT) is an ETF that bets against US Treasury bonds, and that has been a consistent loser for several years, despite the recommendations of several talking heads, and my own skepticism about the US' ability to continue to float debt.