I like bonds, I would certainly be a buyer here. Tapering is a foregone conclusion, so lets go with the assumption that come September the Fed will slow down its pace of asset purchasing.
My friend who is an anesthesiologist called me yesterday and asked how he should be duct-tapering his portfolio. This should give you an idea as to how negative the sentiment is in fixed income land. Bonds (TLT) have gotten absolutely destroyed, off ~17% since the beginning of May. I’m guessing they have seen the worst of this carnage, for now anyways.
I more than understand being under-weight bonds in a diversified portfolio, but as a trade, I think there is a short-term opportunity here. I know we shouldn’t catch a falling knife, but shouldn’t we buy when blood is in the street?