Trade Idea: Short Treasuries

Wednesday, December 10, 2008

Share
Short TLT @ $112
or
Buy TBT @ 43

TLT is an ETF tracking US Government Treasuries with maturity greater than 20 years. TBT is the ultrashort of this same index. Pick your poison. The rush to safety seems overblown and the upside risk of investors accepting lower yields seems minimal. Add future inflation with money supply increases and an adjustment to normal levels seems likely over time. The risk-to-reward looks to be phenomenal.

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