Looked at RYJUX the other day, seemed like a good
buy at 17.25, and I think that was the best price.
finance.yahoo.com
I don't own it, but I'll imagine that I bought
it on paper today at 17 1/2--it apparently spins
off most of the interest at 3.5%, which seems
like a great way to bet against rates falling
much more, and get a little extra. RRPIX is another,
but does not have the 3.5%, but I think does 125% of
an inverse ten year.
In the event the US does have deep recession and
rates go toward 0%, as they did in Japan, the
inverse bond fund would be a disaster--but I cant
see that happening when American Public Debt is
something like $9 trillion. My family owes $120k
of the public debt, that's a lot to come up with.
Probably the US dollar loses another 50% against
the rest of the world to make it manageable.
Too bad I am in cash, what trash--what was I thinking
hunkering down in treasuries?
Stagflation--a recession with rising rates seems the
most likely scenario. I think the inverse bond funds
will do well. One last fed easing, then inflation
will really start to take off. And of course the
easing will do not good--there is no US economy,
only debt and consumption fatigue.
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For my biotech contest picks
Thanks to Helicos my five >$5 biotetchs are up 7%, while the cheapos are off 1%
No idea why Helicos is running up, but nice to see
a tool company doing well. |
