I am not bullish per se. I am 100% in cash and bonds now. I just think it is more probable to have an upside move over next month or two. I also think this because of Katrina will have a positive effect on growth. Congress just passed 50B more aid on top of 10B already allocated plus insurance money around 20B. Where do you think this money will go? Goverment will start spending it and this is good for growth and earnings.
You're long in bonds? any reason why. Just curious cause I've been short the 10 year note and plan on holding the position for couple more weeks. Are you long bonds because of the "fed won't raise rates" rumor being spread on the street?
No. I am long emerging markets bonds as a hedge against dollar drop and as a good income stream. I do not want to touch long USTs. The only USTs I like are on frontend of the curve.
What is your point? One day doesn't make a trend. Also there are so many different types of bonds AAA, B, junk, emerging, UST etc. Which ones are you talking about?
I hate to confuse you but I manage three porfolios - long term, intermediate and short term. Long - I am still bearsh 100% cash & bonds (not US) Intermediate - somewhat bullish on US equties but I am already out of this rally. Shortterm - ask me tomorrow
I was talking about treasury bonds. They were dumped because of reassurances over Katrina-aftermath reconstruction costs.
I think it is more about issue of new ones because where do you think congress will get 60B? It will just dump more paper next auction.