SubscribeBond Bubble? Perhaps – Initiating Position in (TBT)
August 18, 2010
A speculative short of 5% or 10% synthetic position of the 2x Inverse of the Barclays Aggregate 20+ Year Bonds with ticker symbol (TBT) has been included in the portfolio. We are currently seeing some of the highest bond prices and lowest yields since March of 2009 which is signaling a much more detrimental environment then we are currently experiencing. We will keep a watchful eye on this position and cut or add if necessary.
Rates on 30-Year Bonds are currently at 3.762% making it the lowest since March of 2009 which marks the beginning of the “recovery”. This sharp decrease in rates is the worst we have seen since the 2008 recession. This is not exactly a healthy signal in the market and may warrant further hedging of the equity portion of the portfolio if we continue Read more
China Cuts U.S. Treasury Holdings – Big Time !
August 18, 2010
While U.S. Treasuries are in hot demand, it appears that some of the largest holders are scaling back. China, in particular.
Looking at the total data may show that back in December 2009 there was a great in both dollar and percentage terms, but the biggest sell-off came at the longer end of the curve this time.
We are also hearing over the past few days that the big bond players like Read more
Japan Cannot Allow Yen to Appreciate – Policy Action Awaits
August 17, 2010
For Japan, there are billions of reasons that the rise in the Yen needs to be stemmed. Most recently, Toyota and Honda announced that they would be working at a deficit if the yen were to appreciate to $85/dollar.
From Bloomberg today:
“It is apparent that the Japanese authorities will step up levels of warning as the yen approaches the 85 level, making it harder for investors to test further upside,” said Hiroshi Maeba, deputy general manager of foreign-exchange trading in Tokyo at Nomura Securities Co., Japan’s biggest securities broker. “We also need to be aware about comments from policy makers on possible actions.”
There are other, including “Mr. Yen” that believe that a further downside is inevitable.
The biggest problem is that while the Yen appreciates, companies are finding it difficult to add to domestic investment as there are opportunities to expand outside. This creates an even bigger problem for Read more
A Peek Into Our Recent Stock Picks – LIVE QUOTES!
June 21, 2010
Each week on the DHUnplugged Podcast, we come up with a few ideas that may work well for a short- to mid-term trade. Below is a link that will take you to the Google Spreadsheet that we use to track the ideas.
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Looking to invest in The Disciplined Investor Managed Growth Strategy?
Click below for the 14-minute virtual tour….
How Are Our Stock Picks Doing? LIVE UPDATES
May 27, 2010
On the DHunplugged podcast each week we look at a variety of topics and come up with a few stock ideas worth a mention.
Below is a snapshot and a link to the live page that tracks these names and Read more
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