How don’t you love bonds here?

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?

About Michael Batnick

Trying to navigate this Hilsenrath driven market one weekly candle stick at a time.
This entry was posted in Uncategorized and tagged , , . Bookmark the permalink.

4 Responses to How don’t you love bonds here?

  1. Lokesh says:

    Sell SPY and buy TLT short term ?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s