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Re: lambchops post# 33565

Thursday, 03/19/2015 11:11:45 AM

Thursday, March 19, 2015 11:11:45 AM

Post# of 39469
Nothing good will come from US Treasuries, so its now simply a matter of risk/reward and time.

On balance (chances of PFNO having a bump higher vs. the Federal Reserve increasing interest rates by 0.25%) PFNO looks like a better bet at some undefined time over the next 30 years.

One is trending towards 0%, whereas the other has some chance of going up.

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

I'm in very good company:

"...Jeff Gundlach reiterated his belief that raising rates would be a mistake because of the weak global economy and low inflation. Even if the Fed were to take that step, he said, it would eventually be forced to reverse and lower rates, as several European countries have had to do after attempting premature rate increases.

"I'm afraid that the Fed is intent on being a blockhead and raising interest rates against this backdrop," he said, "and further strengthening the dollar, weakening the economy, weakening corporate earnings, and basically having to reverse policy."
..."


Read more: http://www.businessinsider.com/gundlach-fed-rate-hike-would-be-a-mistake-2015-3#ixzz3UqSvOhuS

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