NEW YORK (TheStreet) -- My career on Wall Street began as a U.S. Government Bond trader in 1972 when my father passed the baton to me after he traded Treasury bonds since 1938. He experienced a low interest rate environment for most of his career, but not the sustained trend to the record low yields we have seen so far this century.
On May 15, I wrote Make Money Trading U.S. Treasuries and explained my belief that the U.S. Treasury market was not in a bond bubble. I explained how to buy and trade the US Treasury market like a stock using IShares Barclay's 20+Year Treasury Bond Fund (TLT).
On July 18, I wrote Low Yields Don't Make a Bond Bubble and in this story explained that the only bond bubble came at the record high yields of 1981 through 1986. I illustrated how a buy of TLT on June 17, 2005, with a sell on July 16, 2012, outperformed a similar trade in SPDR S&P 500 ETF Trust (SPY). TLT gained 39.6% versus 12.5% for SPY.
When the Federal Reserve announced QE3 on Sept. 13, it said that the purpose of this monetary stimulus program was to bring down long term U.S. Treasury yields and the rate on the 30-year fixed rate mortgage.Even so there was a parade of Wall Street strategists and money managers continuing the mantra to avoid U.S .Treasuries. They continue to be wrong.
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