1981 was the greatest bond buying opportunity of a lifetime, if not ever. I was a heavy buyer of 10 and 20 year bonds (I'm 58). 2010 is perhaps the greatest bond selling opportunity of a lifetime. The fact that investors are paying $105 to buy a $100 tip bond shows that inflation expectations are soaring. At some point, very soon, this will translate into enormous selling of ordinary bonds (non-inflation protected). It will be of panic proportions and there is nothing the FED will be able to do to stop it.
why not qe3? isn't this essentially what the fed is doing with all it's actions - keeping a lid on long-term rates? for the longest time, we were told that the fed could only control short-term rates - now we see them totally screwing with the market.
i have been invested in tbt for sometime now, as well as rrpix and ryjux, thinking that this is insane. fortunately, my other investments have panned out well, so i am ahead of the 'game' for now.