Just made a purchase at 5.088 for 30 year LTTs

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ppnewbie
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Just made a purchase at 5.088 for 30 year LTTs

Post by ppnewbie »

Its hard to buy something that nobody wants!
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by foglifter »

ppnewbie wrote: Thu Oct 19, 2023 4:10 pm Its hard to buy something that nobody wants!
You are a brave guy! I keep thinking about adding more LTTs into my all-in-the-red positions I opened in 2019. The bond king Gundlach thinks this is a good time to buy, albeit he calls it a short-term trade - well, he's certainly not a buy-and-hold investor.
Jeffrey Gundlach just said long-duration Treasurys will make a good short-term trade in a recession.
He expects a downturn to hit in the first half of 2024, which will push bond prices back up.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by ppnewbie »

I was actually just thinking that. All of my LTT purchases are in the red. But I do like the 5.088 interest rate.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by boglerdude »

EDV down 33% since launch in 08. I backed up the truck early August at 3.3% 12-Month Yield. Today it's 4%. 5.17% SEC yield.

Trading it is pain. Can swing 2.5% in a day. Setting your limit order just outside the previous day's trading range is good enough I suppose.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by Matthew19 »

ppnewbie wrote: Thu Oct 19, 2023 4:10 pm Its hard to buy something that nobody wants!
You nailed this buy, and hopefully all credit goes towards the built in rebalancing of the PP.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by ppnewbie »

I actually made the purchase because I am in the building a balast phase of investing, for my VP (GOLD, SCV, LTT) AND rebalance my Golden Butterfly Frankenstein. I was thinking if I could live with the yield if if rates went higher and 5.088 percent. And I could. Its good income, regardless of what would happen to the price of the bond. Also on another note, I think yields are going to go back to 5.

Its funny all the talking heads were screaming about multiple rate cuts a two months ago. Even Jerome Powell, was talking about cuts. I was wondering how that could happen based on the prices I saw at McDonalds and Costco and also observing how financial media is pretty much pure entertainment. Also "Chief Strategist", "Global Heads of Equity" etc, that appear on these shows are just super smart people finding patterns in noise, then getting paid for it, regardless of the outcome. They are great entertainers. Anyways nobody has a clue what will happen including me, but they are very clever.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by boglerdude »

+ if they're buying Jerome Powell dinner (on their yacht) and he tells them he's cutting in June, they arent telling you until after they're positioned.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by vnatale »

boglerdude wrote: Tue Mar 19, 2024 8:10 pm
+ if they're buying Jerome Powell dinner (on their yacht) and he tells them he's cutting in June, they arent telling you until after they're positioned.


Makes sense!
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by ppnewbie »

I love financial media. Its so entertaining and so wildly uncorrelated with reality. I will be a buyer again at five percent.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by dualstow »

Bought a sliver of long bonds. I’m under weight.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by ppnewbie »

Yield is going up!
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by vnatale »

ppnewbie wrote: Tue Apr 16, 2024 9:24 pm Yield is going up!
So far at this point my ever-present investing procrastinating inertia is paying off. I am still get big-time returns off my significant cash holding by having it all in the Vanguard Treasury Money Market Fund (VUSXX), which I've got a lot of other people into.
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by dualstow »

VUSXX is king 👑
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by vnatale »

dualstow wrote: Wed Apr 17, 2024 3:51 pm VUSXX is king 👑
For 1+ years it has been. Prior to then all it offered was safety with near zero return.
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by dualstow »

Depends on how far back you go.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by ppnewbie »

I want yield and volatility.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by vnatale »

dualstow wrote: Wed Apr 17, 2024 9:03 pm Depends on how far back you go.
I converted all my cash holdings to it in March 2020. From then until about January 2023 it paid nothing. I had owned some of it prior to then.

But prior to January 2023 and starting around October 2008 did any money market fund pay anything much above 0.0%?
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by dualstow »

More importantly, are you buying 30-year treasuries?
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by vnatale »

dualstow wrote: Thu Apr 18, 2024 8:38 am More importantly, are you buying 30-year treasuries?
Not yet. But my main point was that at this point I'm not losing out in locking in the long-term rates because they've still been available.
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by dualstow »

Sounds like you’re not losing out buying insurance because your house has not yet caught fire.
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by Jack Jones »

dualstow wrote: Thu Apr 18, 2024 10:35 am Sounds like you’re not losing out buying insurance because your house has not yet caught fire.
O0
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Re: Just made a purchase at 5.088 for 30 year LTTs

Post by vnatale »

dualstow wrote: Thu Apr 18, 2024 10:35 am Sounds like you’re not losing out buying insurance because your house has not yet caught fire.
I do not accept that as being an apt analogy.
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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