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Strategies & Market Trends : Stock and Bond Market-Timing: Can it be Done? -- Ignore unavailable to you. Want to Upgrade?


To: Skeeter Bug who wrote (151)1/25/2009 8:41:34 AM
From: Boca_PETE  Read Replies (1) | Respond to of 3605
 
I know that leveraged TBT gets you 2 times the inverse effect on long treasuries ON A DAILY BASIS. Having been burned in year 2000 holding one of those 2x QQQ funds, I'm more comfortable with RYJUX which is a more conservative inverse fund.

The big unknown is the impact of the ultimate stimulus legislation congress is about to pass. It could force long term rates down further for a temporary period. Ultimately, I share your view that long rates are headed up. That's why I've started to accumulate a position in RYJUX.

As for shorting the U.S. Dollar, the global nature of the credit crisis is causing many countries to reflate their currencies. Who knows whether or not the amount of our reflation will be relatively greater or less than that of other international countries/economies. Thus, the value of the US Dollar exchange rate could rise of fall. It seems to me, betting on rising commodity prices and tangible assets is a much more sure bet.

P