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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Perspective who wrote (207501)6/18/2009 11:40:16 PM
From: ChanceIsRead Replies (1) of 306849
 
>>>inflation scare will soon wane, as we revisit the nemesis of deleveraging: deflation.<<<

I would not discount that very much. Not much at all.

But if we go that route, how much will you get hurt being in TBT? I think not so much. How much higher can the 20 bond go???

So I think that the upside is much, much greater than the downside - which isn't much at all.

Of course when rates are this low, the durations are very great - a unit change in rates here makes a big change in the bond price. So it can move against you. But that would be short term, and with this much volatility you can always hedge off selling some high priced options.
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