Some are scratching their heads over why rates are heading higher… I don’t know why there are… yet the pattern did suggest they would!
Yields were at the bottom of a 17-year falling channel when I created the chart below (see post here) suggesting to BUY TBF, the inverse bond ETF.
CLICK ON CHART TO ENLARGE
Below is an update to the above chart, reflecting that yields are continuing to push higher and TBF is moving higher in value.
CLICK ON CHART TO ENLARGE
Have some pocket change gains on TBF so far….Keep a 4% trailing stop in place!
Maybe there’s some confusion about the bonds? There’s price, there’s yield, there’s corporate, there’s government, there’s buying direct bonds, bond mutual funds and bond ETF’s and variations of some of the above. Quite a universe.
KY…Per “what happens to high yield funds if rates go higher?”
As you have seen I follow price…price is king and queen! Could interest rates go up due to an improving economy? yes. Would an improving economy help high yield bonds parent companies? Yes it could.
Have rented the high yield funds for months and months and will continue to do so until prices start breaking down.
Chris
i’m ignorant of how bonds/yields works hence this question:
what happens to the six-pack high-yield funds you’ve been posting about, if yields keep pushing higher?
fstrtrdr….You GO with TBT!!! Great job. Way to be James 😉
TBT for me – hit and run like James Bond