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LT, TBT 3:13 PM "Bonds are acting like the bond market is manipulated ... because it is," says Jeff Gundlach, as QE is far more of a put on Treasury prices (TLT -2.3%) than it is on stocks. A salve to bond bulls on a day when the yield on the 30-year is 14 bps higher, Gundlach says yields won't go on a sustained rise anytime soon because QE is going nowhere. A favorite of the bond bears, TBT +4.6%. Comment!
"...Lastly, why own bonds, because they are negatively correlated to stocks? You may not get rich - but you will survive the long term investment game."
Reply to @MaxBialystock: Actually, the bonds that are popular on this board are NOT negatively correlated. In fact, most bonds that are held by this board members have positive correlation. Those high yield bonds, mortgage back securities bonds, etc. have even higher positive correlation with stocks. Although they may small or large positive correlation, they might have small beta with respect to stocks.
The bonds that are negatively correlated ones are the long treasury ones and few on this board wants them.
Comments
The bonds that are negatively correlated ones are the long treasury ones and few on this board wants them.