First of all, we need some bad news in order to get this market going again. Far too many chaps are getting jobs and becoming less dependent upon the government’s tit. The way this market is designed is to keep the working class out of work, while the rich aggrandize themselves through slave wages sought out in China. That’s number one.
Number two, if TLT is going to crush the faces of all the morons who own it, that’s a good thing. Natural order will restore the balance, the chi, and select the milk sop finaglers to loiter about the cemetery, six feet deep.
Number three, if rates are going to rise and there is nothing we can do to stop it, we might as well profit from it. How does one do that? Very simply, indeud.
BUY THE FUCKING BANKS.
As rates rise, the yield curve will inevitably widen and so will the profit margins at your favorite banks. The number one bank stock in this environment is BAC. My favorite super-regional is SBNY, and I am also long MS and LAZ.
The move in TLT is so powerful it will likely knock the hockey-pucks out of those who are long it, leading to a sustained rally in banks. Grab this bull by the horns and enjoy the rotation.
If you enjoy the content at iBankCoin, please follow us on Twitter
PNC has the mojo.
Really wish I had seen this payroll report coming. TLT was a bad thing to buy yesterday, considering this payroll report.
Sold it, also.
Asset managers with big money market fund businesses (like Federated) would be good too. Those funds are in reimbursements in the current rate environment, but would be profitable and likely attract assets with higher rates
By the way Fly i subscribed (as instructed) to the instagram feed the other day. I got a kick out of you banning someone for saying “wow!” following a post.
That “wow” was automated. You’d be surprised at how many spammers are on IG now.
it’s like 75% spam
How about TBT on the inverse?
Everybody has jobs, everything is going great! Oh look the market is selling off on the prospect of raising rates. Looks like the fed wants to avoid 2008 again but they can’t. Fly has been calling this since Fed QE ended: The market needs QE to go up. I’ll add to that and say that rates need to stay near zero for stocks not to go down. Subprime is still out there so once rates get high enough again all of the sudden a lot of car loans and some house loans are going to go under putting the market and economy under pressure again. This post sounds bearish but I am bullish. There is at least 3-6 months of buyable dips ahead. Fed is reactive not proactive so by the time rates start to really increase is when the market starts to fade.
I like CFR, its been hit pretty hard due to fracking debt exposure so is a double bet on rising rates and fracking prosperity.