Jeff Gundlach On Treasury Bonds, Nov 24 - Business Insider

Jeff Gundlach On Treasury Bonds, Nov 24 - Business Insider



This is an outstanding article about why long-term treasury bond ETFs will be safe this year, and they will most likely also outperform the S&P 500 in 2015 just like they did in 2014.  I am talking about TLT and TMF (3x TLT).  In fact, TMF is my largest holding although I am trading in and out of it around a core position. 



The world is a troubled place, and people can safely make more in long-term U.S. bonds than they can make in other places.  As long as fear exists in the market, bonds will be favored over stocks even if they are overvalued.  I will exit part of my TMF position when the stock market has fallen a little further.  When I look for a bottom in stocks, I turn to $NYMO, the NYSE McClellan Oscillator.  When $NYMO drops to around -75 or greater, there is an overwhelming chance for a stock market rebound.  Then, I sell part of my TMF and buy UDOW, 3x Dow, to ride the market back up until the next down cycle begins.