See what happens in June when Operation Twist ends and Ben stops buying long bonds. In feb 2011 30-yr bond sold for 4.75% . One year later, Feb 2012 30-yr bond sold for 3.15% under Operation Twist a decrease of 160 basis points or loss of 34%.
To think that for years, I thought bonds were a stable investment vehicle. As they say, ignorance is bliss.... heheheheh
Bernanke pretty much made it clear yesterday that rate's aren't gonna' spike EVER<<
Well hottie, he was around in 2007 telling us that the housing crisis was nothing and in June 2008 he thought the economy was recovering. He has an excellent record of being wrong. Let us hope he will maintain the record so we can see Obummer go away. Just one more massive train wreck will do the trick :)--biggest bubble these days is his bond one.
Deleveraging of huge debt, combined with the United States having 10 time's the strongest military in the world of any other country. The second strongest is China.In my thought's, that is why TLT is strong.Also the United States is the world reserve currency.
So what isn't government interfered? You don't think there is a butterfly effect when you manipulate one market?
And with respect to TLT didn't anybody see the huge miss in ISM yesterday? We're going into recession by mid-year. ECRI isn't stupid, they wouldn't bombard the airwaves if they didn't see something - which I see as well.