Go to the Amazon.com link below for TIMING THE MARKET by Deborah Weir (Wiley, 2005).
Email: DebWeir@WealthStrategies.bz
Take her class at the NY Institute of Finance: nyif.com/courses/fimk_1014.html.
Friday, October 07, 2011
"Operation Twist," where the Fed sells short-term instruments in order to buy long-term ones, was expected to flatten the yield curve. That didn't happen this week; the curve became steeper. Are investors selling bonds to go into the stock market?
For pessimists, or those close to retirement, wouldn't Operation Twist simply mean they can now profitably exit longer duration treasuries and pick up safer, short term treasuries, at an improved price and ride the price higher as other similarly positioned investors enter the same trade?
Yes, you certainly could shorten the duration of a portfolio in advance of the Fed's activity.
People close to retirement may want more income than treasuries provide. Cash-producers such as real estate (we still have a fire sale going on) and master limited partnerships (MLPs) are options.
3 comments:
For pessimists, or those close to retirement, wouldn't Operation Twist simply mean they can now profitably exit longer duration treasuries and pick up safer, short term treasuries, at an improved price and ride the price higher as other similarly positioned investors enter the same trade?
twist operation does not anything, Mr Market wanted a operation from FED........and the Ben sent Twist.
It´s time to buy stock....sell dollar index, long in treasury bond, long WTIC and Natural Gas.
Funds are selling all.........and institucional buying to acumulate.
Hagen
Kumbu,
Yes, you certainly could shorten the duration of a portfolio in advance of the Fed's activity.
People close to retirement may want more income than treasuries provide. Cash-producers such as real estate (we still have a fire sale going on) and master limited partnerships (MLPs) are options.
Best,
Deb
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