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Fifth Street Finance Corp. Message Board

  • thewisejman thewisejman Jul 12, 2013 10:53 AM Flag

    A day when almost everything drops

    while the market is stuck in neutral gear. It was indeed strange to see almost all my longs and practically all my shorts went down slightly. The only other time I saw this strange phenomenon was in 2007-2008 whenever the market was going side way and nowhere. I once hold both long ETF and short ETF shorting the same Chinese stock index, only seeing both of them tanked at the same time when the market was not moving. I wonder this may happen with this current market, that may mean everything, including both shorts and longs can indeed go down at the same time.

    Read an article yesterday, one financial adviser said he had been advising his clients in buying both TBF (inverse (-1x) of the daily performance of the Barclays U.S. 20+ Year Treasury Bond Index) and TBT (the inverse (-2x) of the daily performance of the Barclays U.S. 20+ Year Treasury Bond Index). I actually believe we may be facing deflation in short term and long term interest rate may actually drop but I will watch both of them closely and will start buying them when they drop to certain levels because in long term I believe interest rate has nowhere to go but up and will be de ja vu 1982.

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    • Right, you continually say the market will tank, but it continues to go up, and of course every stock that you have goes down, and every defensive play you say to make has gone down. No wonder you are down. What is wrong with this picture, could it be that you are long and short in the wrong groups.? I should not do this because you are an idiot but suggest accumulating TBT and TBF, they are inverse bond ETFs that go up when interest rates go up. They are down today because today rates are down, but rates are headed higher and when rates really shoot up a fortune can be made. Just start with a small position and add to it as rates go up, in other words, average up, not down, you fool.

    • Many of the floaters in my watch list are tanking today, appear that many investors now may believe interest rate will not rise any further. It may provide another buying opportunity. Watch VVR and PPR closely, these two can be bought real cheap and then all of a sudden they will rise sharply. PFLT is probably the best among them and I hope it will drop below $14 and I will start buying. In the long term, if you believe interest rate will rise, you will have to buy and hoard both floaters and BDCs. FSC drops today with no bad news, interesting.

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