Keith RichardsBMO Long-Term US Treasury BondZTL-NLBTOP PICKSep 06, 2017
A contrarian pick, because if the markets are going to sell off, there is often a flight to safety, and bonds can be okay. He doesn’t expect huge upside on this, but some neutral to positive upside. The contrarian side is that this is not hedged. In the near term, the loonie is a little overbought, so we may get a little pop on the exchange settling down a little. He is probably going to hold this for 1 to 2 months.
Believes inflation will be sticky the next few years. Duration (interest rate risk) is a big concern. If can lock in above 4% yield - is a good time to buy.
Buy the Canadian or US dollar version? If you have US dollars in a US dollar account you would buy in US dollars. If you hold it in Canadian dollars the holdings are in US dollars so you get the currency exposure and that is what you want. You want this until stocks start selling off.
A contrarian pick, because if the markets are going to sell off, there is often a flight to safety, and bonds can be okay. He doesn’t expect huge upside on this, but some neutral to positive upside. The contrarian side is that this is not hedged. In the near term, the loonie is a little overbought, so we may get a little pop on the exchange settling down a little. He is probably going to hold this for 1 to 2 months.