Shorting TLT is not ideal when the FED is still buying up MBS. I am still trying to figure out a way to determine how to detect a turnaround in this Bond rally and I have to be honest with you that...it is very hard to know the right timing to short this.
I am pretty sure that the we will know when equities start rallying and get out of this depressed state...In the mean time I wouldn't want to get in the way of this rally.
If you feel that you want to short this and are willing to be patient...then go for the TBT. I do not think that the returns will be as great as the returns on your equity trades.
Wednesday, December 17, 2008
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