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Politics : Ask Michael Burke

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To: Terry Maloney who wrote (73770)1/15/2000 3:58:00 PM
From: Knighty Tin  Read Replies (2) of 132070
 
Terry, I think you are going to have to go to the printed world for bond math and calculations. There may be a web site that is good, but I haven't seen it.

It is beginning to look like bond rates have to go higher to get the stock market bubble to stop expanding. The worst year in bond history should have done it, but Greenspan kept fighting as hard as he could against the bond vigilantes. Now, he still is talking like he is going to be loose as a goose.

But, you have to be in the bonds before the market perceives that the Fed is really tightening, so I would buy a third of my position right now. However, I am more inclined to hold T-Bills and buy longer term call options on the bond future or put options on the yields. That is because I see the move, both ways, as being very large and I don't want to take the risk of holding the underlying security if it crashes some more before it rises.
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