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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV