ETF Expert

The argument remains exactly the same. Fed policy devalues the U.S. dollar, and a devalued dollar leads to higher inflation. What’s more, the U.S economy’s slow growth won’t be able to command a premium for its double-A rated 30-year treasuries paying a meager 3%. Therefore, treasury bond bears argue, bond prices must fall (and yields must climb).

Of course, Bill Gross — and a half-dozen other prominent bond kings – famously got this one wrong. (And that was back when the 30-year traded north of 5%!) Yet investor interest in betting against U.S. treasuries are once again picking up steam.

Without a severe recession or massive QE prospects beyond “Operation Twist,” a second wave of treasury bond negativity has surfaced. The put-call ratio on the iShares Barclays 20+ Year Treasury Bond Fund (TLT) is at a 2-year high. Meanwhile, the volume on ProShares UltraShort 20+ Year Treasury ETF (TBT) has been surging.

Bearish Options Bets Against Treasury ETFs At Highest Levels In Years – Murray Coleman, Barron’s
S&P’s Best Dividend ETF Picks – Tom Lydon, ETF Trends
Bearish Near-Term Scenario For Oil – Mike Paulenoff,  MPT Trader
Pledge To Help European Banks Ignites Global Rally – Trang Ho, Investor’s Business Daily
From Russell Investments, Four More ‘Intelligent Beta’ ETFs – Robert Goldsborough, Morningstar     

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Disclosure Statement: ETF Expertis a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure 2details here.

Tags | Dividend ETFs, Global ETFs, Intelligent Beta ETFs, Oil ETFs, Treasury ETFs