I may be jumping the gun here, but with the emergency rate cut. we are going to have to cut the rates some more next fomc meeting, and as the situation progress and with the way trump is whining about fed rate cuts. there a high chance of certainty that they will eventually cut the rate to 0%, especially as corona cases get serious and hits 1 million. it's currently at 90k right now but there's without a doubt it will suppress 1 million.
i am looking to buy puts for 2021 and continue to double down if it keeps going up. Kinda like Michael Burry from "The Big Short" i will borrow money to keep doubling down if i have to! ITS A BOND BUBBLE!!!!! lolz
There's that TLT DROP i was talking about. Closing puts if we hit $144, buying some calls there and then add on more puts once it bounces like $10. Guarantee MOONEY
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A lot of sheeps think that if interest rates hit 0%, people would want to buy 10 year bond, but that's quite opposite because the reason they cut rate is to encourage spending, which would boost the stock market. When the stock market drops very low, people would rather invest in the market than in bonds because they can make 100% return in the stock market in 10 years vs 2% return yearly for 10 years.
Dude total opposite of what you are saying...when the FED cuts rates, you wanna jump into these 20+ year bonds... wtf LOL you are crazy man
WallSt007
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@cryptoknight_90, Go ahead sir, you do you. i just made 10k shorting bonds =\
RDJones0523
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Remember after zero rates then cash is king in a recession. Equities are in a bubble and bonds and gold are the only place to be just to preserve the value of cash.
WallSt007
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@RDJones0523, in a recession. everything is a bubble.