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.
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