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Profit From Inflation: 3 Ways to Short Bonds

by John Jagerson 07/02/09

3. Leveraged funds will underperform in the long run because they lose some of the benefits of compounding. (Learn more about leveraged ETFs for stocks, bonds and currencies.)

You will notice that the disadvantages of this strategy mostly concern the fact that a short bond strategy is a short-term strategy. Short-term trading costs more and is more difficult than longer-term investing.

However, when faced with an extraordinary market and an evolving economic environment, looking outside the long-term box for new opportunities can be quite attractive.

John Jagerson is a contributor to LearningMarkets.com. To learn more about him, read his bio here.

This article originally appeared on the Learning Markets Web site.

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