Zero coupon bonds 🚀
This is the most extreme US Treasury bond ETF. Basically pay some amount and get back face value in 25 years. Inflation would kill these, whereas deflation and falling interest rates will send this to the moon.
Interestingly this pays a dividend in line with other bonds, I looked it up and it looks like the fund has to do this for tax purposes, but the underlying security has literally a Macaulay duration of 25 years. TLT by comparison is 17 years (per iShares website), so duration risk is 50% higher.
Using fibs a modest pullback to 78, completing a IHS, would be a great place to start loading up, assuming 1) this thing doesn't just take off right here, and 2) I'm not totally wrong and inflation comes back next year.
Interestingly this pays a dividend in line with other bonds, I looked it up and it looks like the fund has to do this for tax purposes, but the underlying security has literally a Macaulay duration of 25 years. TLT by comparison is 17 years (per iShares website), so duration risk is 50% higher.
Using fibs a modest pullback to 78, completing a IHS, would be a great place to start loading up, assuming 1) this thing doesn't just take off right here, and 2) I'm not totally wrong and inflation comes back next year.
Comment:
Nice to see this target hit. I will take a starter position tomorrow.