How do I short US Treasury Bonds?
April 7, 2009 by How Savings Bonds Work
Filed under More Bonds Answers
Can you answer Can’t think of a name’s question about Bonds?:
I live in the UK, and have a share dealing account with Barclays.
I live in the UK, and have a share dealing account with Barclays.
Marc Faber has called the US Treasury Bonds the mother of all bubbles, I want to capitalise when the bubble bursts.
Cashing In Savings Bonds
Bonds Feedback: Conventional wisdom says Treasuries are overvalued and soon enough inflation will cause rates to rise bringing down bond prices. This might be right but as is often the case with conventional wisdom it could be spectacularly wrong.
While Marc Faber is not the stupidest person on CNBC, remember most of those monkeys on that channel know nothing about finance or markets.
Anyways, a shop called ProShares has two inverse Treasury ETF’s. The symbols are PST for intermediates and TBT for longer maturities. (I’m going to assume you understand the effect of maturity length on bond prices, if you don’t, consider that God is telling you not to do this!)
Either way they are very speculative and are designed for traders, not for investors. Please do yourself a favor and completely erase the leveraged version of these from your consideration set. These products are designed to destroy you financially (read the prospectus if you think I’m being hyperbolic!).
Also remember we appear to have just started a deflationary period. If this deflationary period lasts a few years, fools who follow Marc Faber and his conventional wisdom will be hurting. But, then again, so will we all!
Bonds Feedback:, thats what you need to go to.