- Frank GrossmannModerator11/07/2014 at 5:19 amPost count: 146
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.
You must be logged in to reply to this topic.