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A Bonus Trade:We are currently borrowing surreal amounts of money and will borrow more next year – maybe as much as a trillion dollars for the new deficit plus the rollover of a lot of debt. Right now, the dollar and Treasury bills as a safe haven are keeping rates very low -- but this too shall pass. Once people feel comfortable buying commercial paper and bonds issued by risky governments such as the UK and France, demand for our debt will fall and interest rates will eventually go up. Nothing the Democrats or the Republicans can do about this. Recommendation: There are two ETFs you can buy. Both are double short -- they go up 2% for every 1% bond prices fall – the UltraShort Lehman 7-10 Yr Treasury ProShares (PST), which shorts 7– to 10-year T bills and the UltraShort Lehman 20+ Treasury ProShares (TBT), which shorts 20-year-plus T bills. There you have it -- and if McCain wins, come back for another analysis and a video of me eating crow. Good luck trading in the new era! |
- Options News: STT, ADM November 6, 2009
- What's Hot: CVS, DPS November 5, 2009
- Sidewinder: CVS, VIA, XL November 5, 2009
- Options News: CTSH November 5, 2009
- Sidewinder: CSCO, SPY, SPLS November 4, 2009
Trading Option Straddles During Earnings Season
Binary Options: An Investment to Avoid (For Now)
Understanding How Implied Volatility Affects Options Traders: Part Two
Understanding How Implied Volatility Affects Options Traders: Part Three
How to Combine Conservative and Speculative Strategies for Maximum Profit
What are the five rules for constructing great short-side positions? Read on to find out.
10 Reasons to Use ETFs When Trading Options
How do investors and traders cope with a market that has fallen more than 40% in just one year and survive until greener pastures return?
The Bad News Victims of 2008 are the
New Victors of 2009
There were a lot of losing trades last year, but there were also winners for those willing to bet against conventional wisdom -- and this will be the case in 2009, too.
The 10 Dumbest Analyst Calls of 2008
This collection of calls has been easier to write than See Spot Run. My only difficulty has been restraining myself in order to not be sued, punched out or have my tires slashed.
Don't Stop 'Banking' on a Bailout
The Titanic is only just approaching the iceberg. And there aren't enough lifeboats handy for everyone who's going to need one.
