by Gary Lewis
Interest rates have been in a steep decline for years and years now. Anyone short in the bond market for any long period of time has gotten their heads handed to them. Perhaps now is the time to establish a long term position to play the bursting of th last great bubble in the US economy.
Symbol TBT is an Exchange Traded Fund that moves 2% up for every 1% down that the long term bond prices move. Already it is off the lows of 30, and pushing 38.
Anyone who fears that the Fed has usurped their authority and will be constrained should consider adding some of this to their portfolios. While TIPs are a nice way to play inflation on the fixed income side, the ETF TBT will give you plenty of bang for your buck without having to move to the derivatives markets.
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