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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (1094)	7/28/2006 10:43:37 AM
From: Mike McFarland	Respond to of 20435

Shouldn't be a problem, I think those funds calculate hourly, daily quotes are a cinch. The ten year has dropped below 5% again, that cannot last forever--we ought to be up around 7% in a few years. RYJUX is an "inverse bond fund" Here is an article--the bet is old news, it just hasn't panned out, yet. marketwatch.com Investment newsletter author William Donoghue, head of advisory firm W.E. Donoghue & Co., is still a big fan of inverse bond funds despite their losses. "Interest rates will rise over the next few years as the Fed tries to stop the dollar's decline," he said. "These funds are for patient investors who realize interest rates have nowhere to go but up." The fly in the ointment is that the administration may not care if the dollar declines. I may be a tad paranoid, but tax policy and such always seems to say a big F. You to savers. It is all set up to favor lenders, with a big subsidy to consumers to borrow like crazy and keep the money flowing toward the banks. In fact, the whole real estate bubble seems to me a way to prop up the economy with "assets", that are in turn just heaps and heaps of loans. I suppose borrow and spend works out okay in the end if rates rise forever while the dollar declines. You just have to get your free money, then let inflation pay off your loans. You still end up back at rising rates, either way I muddle through it. I'd better run off to a rant thread, heh.