iShares 20+ Year Treasury Bond ETF (TLT)

Taps into the inflation theme. The upside could be 20%. Could be quite volatile.

(A Top Pick Feb 17/09. Down 13.5%.) iShares 20+yr Treasury Bonds. Got out when bonds started acting poorly, caught it at the bottom in June and still likes it. In an economic recovery, yields should not be this low. Good risk/reward. Bears sentiment on bonds is exceptional, which is a condition he usually likes.

(A Top Pick Aug 12/08. Up 4.57%.) Typically bottoms in June and rallies into December. Average investor is underweight treasury bonds by a factor of 4.

iShares 20+ Year Treasury ETF. Likes government bond yields right now and this is a way to express it. US treasury market has suffered a dramatic increase in bond yields going from 2.5% last year to almost 5% last week. She believes we are still working through a weak economy. Bond yields are pricing in a V shape recovery and that bond yields will continue to trend lower throughout the summer.

In along term bull market.

(Top Pick Aug 13/08, Up 15.27%)As this corrects, it does so on lower and lower volume. We can’t sustain much of a raise.

(A Top Pick Aug 12/08. Up 16.6%.) Still trending upwards. Getting close to an entry point again. Drop in Dec-Jan was pretty dramatic. Use a Stop of about $95-$97.

(A Top Pick Aug 12/08. Up 24%.) Looking to acquire this again.

(Top Pick Aug 12, 2008, Up 7%) He sold it. Felt at some point the Fed was going to inflate and if that catches, long bonds are not the place to be. Got out because in September it did not get above it’s previous high.

Dividend yield, capital appreciation of 6%-8% in this environment is very comfortable. As a Canadian investor, you get the yield, capital appreciation as well as the Cdn$ pickup.

Top Short Overvalued at 32 X earnings.