...yesterday looked like we went from risk off to risk on......hedged TLT with equal amounts TBT...hedged SH with equal amounts of SPY...will lighten up on the shorts if risk on is confirmed....otherwise, if the trend continues down, will lighten up on the longs...
Wes- Please provide descriptions of abbreviations for those of us that don't speak the language.
Also would be interested in how you manage your investments.Sounds like you dont go the Mutual Fund, let it ride route.
TLT is a long US 20-year treasury bond (down 3% yesterday)TBT is 2x short 20-year US treasury bond (up ~6% yesterday)SPY aka the spiders is the sp 500 longSH is short (or inverse) the sp 500each pair moves in the opposite direction of its index - either long or short - so they can be used to hedge one another...if desired...risk on - increase long exposure with SPY and TBT (money out of bonds and into risk assets)risk off - SH and TLT (money out of stocks and other risk assets and into bonds)...ride the waves...i do have long holdings in individual stocks and in mutual funds, but i also speculate with a percentage of my holdings...
...yesterday looked like we went from risk off to risk on...
ReplyDelete...hedged TLT with equal amounts TBT
...hedged SH with equal amounts of SPY
...will lighten up on the shorts if risk on is confirmed
....otherwise, if the trend continues down, will lighten up on the longs...
Wes- Please provide descriptions of abbreviations for those of us that don't speak the language.
ReplyDeleteAlso would be interested in how you manage your investments.
ReplyDeleteSounds like you dont go the Mutual Fund, let it ride route.
TLT is a long US 20-year treasury bond (down 3% yesterday)
ReplyDeleteTBT is 2x short 20-year US treasury bond (up ~6% yesterday)
SPY aka the spiders is the sp 500 long
SH is short (or inverse) the sp 500
each pair moves in the opposite direction of its index - either long or short - so they can be used to hedge one another...if desired...
risk on - increase long exposure with SPY and TBT (money out of bonds and into risk assets)
risk off - SH and TLT (money out of stocks and other risk assets and into bonds)
...ride the waves...
i do have long holdings in individual stocks and in mutual funds, but i also speculate with a percentage of my holdings...