This is going to be the easiest trade of my career. You fatalist bozos out there are convinced because the Fed said they might stop plopping $85 billion per month into the bond market, that means they will begin selling their bonds. You are entirely retarded, full bananas.
By purposefully sending rates higher, the entire country will be destroyed (awkward pause).
I wish this blog was still a rated X venue, so that I could properly lecture you about how stupid you are for believing TBT is a long term investment.
Over the past 6 months, REITs and a slew of closed end funds have been dismantled. These are, traditionally, the safest investments for a long term oriented investor.
This is what is going to happen.
Rates will remain low, for infinity. Whoever sold short bonds this month, eagerly awaiting to be rewarded via Armageddon, will be ramrodded into a ‘fag box.’ All of the REITs and bonds that traded lower will rally, alongside stocks. A great giant reflation of bond prices awaits, because the fix has always been in and the United States of America is about to finance another war.
Closed End funds down more than 15%, over the past 6 months
REITs down more than 20%, over the past 6 months
I am sure many of you pole grabbers will take the other side of this trade. I am so convinced about the prospects of REITs, I’ve begun buying calls on IYR and have plans to accumulate a handful of these stocks, into weakness.If you enjoy the content at iBankCoin, please follow us on Twitter