I would like to say one thing straight from the start. I'm no soothsayer. I look for opportunities where the Reward can outweigh the Risk greatly. I'm no gambler. In a world full of money, it's good to research which side of the fence you wish to stand on. You can see previous posts about gold, I love the stuff, great stuff, but it's not the only stuff out there. So let's get straight into it. Multiple drivers will raise 10-year Treasury yields to %1 - %1.25 as per a recent interview with Michael Schumacher from Wells Fargo, not that that means much, however I agree with his sentiments. I am placing positions to short 7-10 yr. Treasuries as well as 20 yr.+ Treasuries. as a long term play over the summer. In the fall I would like to wait and see where we are at. Full disclosure - I got this idea from the end of a Jim Rodgers interview. I'll find it and put the link down below. This is an old dude play and I love it! So I do some research, and I suggest you do yours as well. I find out that this is a smart move but that on the Risk side it has exposure to interest rate drops. Also, if you choose to short Treasury bonds, you are making a bet on a decent world economic recovery from COVID-19 and the world moving away from a low-yield safe haven in the dollar. I will put all of the links to where I did my research and you can check it out as well. See what you think.
This is one of the beauties I plan on using to short the market. There are many other ways. This is just one. Look how beautiful those curves are!
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/textview.aspx?data=yield - Go to this site and check out the historical yield curve changes.
https://www.youtube.com/watch?v=HM6JPlIzW04&t=430s - Jim Rogers interview - also mentions some other cool stuff. The bond bit is at the end of the video, the last question he asks. Check out what he says about government digital currencies and Bitcoin at around the 10:00 min. mark.
https://www.cnbc.com/2020/04/27/ten-year-treasury-yields-will-stage-a-run-above-1percent-wells-fargo.html - interview with Michael Schumacher from Wells Fargo about rising
Thank you for reading. I hope you enjoyed the info. Let's make some dough!
Yours Truly,
Jose Cansebro
