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Sherlock356

12/12/03 12:17 AM

#180631 RE: choad #180627

ususally the mkt does fine over the first couple hikes by the Fed....after that you are on thin ice...
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osprey

12/12/03 1:37 AM

#180640 RE: choad #180627

Choad, the rising interest play is almost a no-brainer. I played the falling interest rate in the bubble aftermath by going long 30 year treasuries. So did Warren Buffet. He bought billions more than me and covered before me. Still worked pretty well. I asked for rising interest rate plays before on this thread and the good people came up with some good ideas.

Rydex inverse floater type funds.
Some junk bond funds might be worth looking at.

As to when it will occur, some of the move has already been made, the tnx (10 year treasury yield) is up from the June lows. I suspect that interest rates will make their next move up if the market goes clown long, the economy still looks legitimately strong, or the fed is forced to raise rates. By June-July at the latest. I only do this with a small part of my low risk portfolio as a diversification. Diversification is good, low risk is good, patience is good. Most traders that I know have a trading line and a lower risk investment style account. Even Jesse Livermore did that after he made tens of millions and got wiped out to zero a few times.

PS. What is this with Razor clams. Why not something from the Sound, like Gooieducks?