Schould we keep Treasuries after the recent correction of August 2014?

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Schould we keep Treasuries after the recent correction of August 2014?2017-03-03T15:27:48+00:00
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  • Frank Grossmann
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    Post count: 167

    I personally keep Treasuries as a hedge as long as they have a positive 3 month performance. TLT is still 3.8% up for the last 3 month, so the recent correction is was probably only a correction of a very overbought condition. I really don’t know if the announced rising rates for next year will have a big effect on treasuries at all. US Treasuries are very attractive for most foreign countries at the moment. Even government bonds of Spain return 1% less than US treasuries and they are much riskier.
    Anyway if you hold treasuries together with a ZIV position long term, then the Treasury performance is not so important. The most important is the reduced risk.

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