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Betting the 30-Year Bond Is Not Really Betting at All

The trader describes an opportunistic trade and makes a call for readers' journal entries.
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Oil at its high. Purchasing stuff too strong. Dollar getting weaker.

Sell the bonds.

That's what went through my mind when I flipped the five million in bonds. Immediately after I did it, a half dozen of you asked me why I did it. First, this is not an important trade for me. I used money that would normally have been kept in overnight cash. I am not leveraged bonds. I am not leveraged anything. I have about $150 million in cash. (Very few shorts, mostly cash as a hedge.) That's why betting the 30-year is not really betting at all. I was simply taking some cash and putting it in bonds, betting that I would make a little money.

I made $40,000 on the trade.

Remember, I am a hedge fund manager. That is not a big amount of money for my partners. It was strictly opportunistic. So, with the fundamentals for bonds weakening, I blasted out to play again.

Random musings:

Do you like to read these kinds of diary entries? If you have some of your own, why not send them to me at We could publish them, like


does, and it could be a real hoot and an inspiration to all.



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split two for one?" Yep, when you start hearing questions like that, as I just did, you know the slide has taken on some vertical proportions. Nastola.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at