UST's are one of the most liquid investment assets in the world
and hence are currently a safe haven in times of
madness. The buyers of UST's are diverse, all
over the world. Includes, govs, corps, private
citizens, etc.
Buying TLT or TBT or other bond ETFs (there are many, check
) is not 'safe' as they will vary with interest rates however,
can be used to make money in times of broader market risk
aversion. You can be on the wrong or right side of the
trade like any ETF.
Given the debt load of the US these statements could change with
time.
back to bed.
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just happened
Question about Bonds
Posted by rreich on 5th of Aug 2011 at 03:46 am
to be awake after too much wine with dinner.
UST's are one of the most liquid investment assets in the world and hence are currently a safe haven in times of madness. The buyers of UST's are diverse, all over the world. Includes, govs, corps, private citizens, etc.
Buying TLT or TBT or other bond ETFs (there are many, check
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show&disp=p
) is not 'safe' as they will vary with interest rates however, can be used to make money in times of broader market risk aversion. You can be on the wrong or right side of the trade like any ETF.
Given the debt load of the US these statements could change with time.
back to bed.