TLT long, long and only long, don't give up and keep it with you
Again me and again my TLT)))
First of all we should keep safety and creditworthiness U.S. Treasuries are backed by the U.S. government, making them one of the safest investments globally. They are considered risk-free in terms of credit risk, as the U.S. government has never defaulted on its debt.
The second one and the most important point - we have ATTRACTIVE Yield Opportunities
10y 4.77%
20y 5.041%
30y 4.959%
Starting from the 1980s, this is the second time the Fed is cutting interest rates while yields are rising. Of course, this carries certain risks, and experienced investors know that the 1980s were not the best times for reliable investments.
The market is anticipating a new wave of inflation, and professional participants do not agree with the Fed's 1% cut. Especially with the 50-basis-point decision in September. Up to this point, many believe that the fight against inflation has failed, and some banks even fear that not only will the rates remain unchanged, but further hikes are possible.
No, no, and once again, no.
With inflation at 3% or a bit higher, rates of 4.5% cannot logically rise further. They might remain unchanged for an extended period or be reduced slightly, taking macroeconomic indicators into account.
Currently, the market is not moving out of fear of a strong labor market or high inflation but exclusively out of fears related to the Trump administration. These include promises of new sanctions, tough measures against migration, and tax relief. I honestly believe that of the aforementioned, only the tax relief will be fully implemented. There will be a few formal sanctions, primarily targeting China, while migration policies will remain election promises and not actionable programs.
In the face of all this, we have very low TLT and very high yields for 20+ or even 10y, which are truly worth our bid.
First of all we should keep safety and creditworthiness U.S. Treasuries are backed by the U.S. government, making them one of the safest investments globally. They are considered risk-free in terms of credit risk, as the U.S. government has never defaulted on its debt.
The second one and the most important point - we have ATTRACTIVE Yield Opportunities
10y 4.77%
20y 5.041%
30y 4.959%
Starting from the 1980s, this is the second time the Fed is cutting interest rates while yields are rising. Of course, this carries certain risks, and experienced investors know that the 1980s were not the best times for reliable investments.
The market is anticipating a new wave of inflation, and professional participants do not agree with the Fed's 1% cut. Especially with the 50-basis-point decision in September. Up to this point, many believe that the fight against inflation has failed, and some banks even fear that not only will the rates remain unchanged, but further hikes are possible.
No, no, and once again, no.
With inflation at 3% or a bit higher, rates of 4.5% cannot logically rise further. They might remain unchanged for an extended period or be reduced slightly, taking macroeconomic indicators into account.
Currently, the market is not moving out of fear of a strong labor market or high inflation but exclusively out of fears related to the Trump administration. These include promises of new sanctions, tough measures against migration, and tax relief. I honestly believe that of the aforementioned, only the tax relief will be fully implemented. There will be a few formal sanctions, primarily targeting China, while migration policies will remain election promises and not actionable programs.
In the face of all this, we have very low TLT and very high yields for 20+ or even 10y, which are truly worth our bid.
gor_gevorgian
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
gor_gevorgian
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.