Historic Bullish Sentiment Along With Historic Resistance In Bonds Isn't Good

Discussion of the Bond portion of the Permanent Portfolio

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Reub
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Historic Bullish Sentiment Along With Historic Resistance In Bonds Isn't Good

Post by Reub »

A chartist who I follow, JC Parets, said today that he sees historic bullish sentiment in treasury bonds along with historic resistance at this time, specifically in the long end. This does not seem like a good combination. Should we be starting a bond scream room soon?
Last edited by Reub on Wed Apr 20, 2016 4:32 pm, edited 1 time in total.
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MachineGhost
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Re: Historic Bullish Sentiment Along With Historic Resistance In Bonds Isn't Good

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Do bonds climb a wall of worry like stocks???
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sk55
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Re: Historic Bullish Sentiment Along With Historic Resistance In Bonds Isn't Good

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I don't know about you. 
TLT hedged my portfolio perfectly last week!

If the rest of the world is doing bad I don't mind
Holding long bonds!!
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sophie
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Re: Historic Bullish Sentiment Along With Historic Resistance In Bonds Isn't Good

Post by sophie »

Bullish in treasury bonds???

That's a new one!  For the last several years we've all had sweaty palms when it's time to buy bonds, and now it turns out we may have been doing the right thing all along???  Who'd a thought it?
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Re: Historic Bullish Sentiment Along With Historic Resistance In Bonds Isn't Good

Post by sk55 »

The only time Long bonds have problems is during inflation of 70's...  i really don't buy them for yield but for massive price moves when stocks are falling hard.
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MachineGhost
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Re: Historic Bullish Sentiment Along With Historic Resistance In Bonds Isn't Good

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sk55 wrote: The only time Long bonds have problems is during inflation of 70's...  i really don't buy them for yield but for massive price moves when stocks are falling hard.
They don't always do that.  Gold takes up the slack sometimes.  Sometimes they all fail.  Don't get complacent.  The bonds are specifically there for deflation not as an equity hedge.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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dualstow
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Re: Historic Bullish Sentiment Along With Historic Resistance In Bonds Isn't Good

Post by dualstow »

Remember when pp-forum member 6-Iron or 9-something said s/he felt like an idiot selling long bonds and buying new ones? It really does take a leap of faith, but it's been paying off.

May 15th passed over the weekend and I got a payment from my best holding, a rate of 4.39%. I was reminded that Fidelity shows these interest payments promptly. Mine posted on Friday, but were dated May 16th, a payment from the future! Vanguard's always a bit late.

I'm always tempted to bail on my worst individual 30-year bond, which swings between profit and loss pretty much every day.
sk55 wrote: I don't know about you. 
TLT hedged my portfolio perfectly last week!

If the rest of the world is doing bad I don't mind
Holding long bonds!!
sophie wrote: Bullish in treasury bonds???

That's a new one!  For the last several years we've all had sweaty palms when it's time to buy bonds, and now it turns out we may have been doing the right thing all along???  Who'd a thought it?
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