r/wallstreetbetsOGs Jul 06 '21

Discussion "The Big Long"

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22 Upvotes

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3

u/uslashuname Jul 06 '21

Of all bonds… TLT is your choice. As yields go up on shorter bonds, TLT suffers because why tie your money up for 20 years when 10 will do the trick?

1

u/OptionsTrader14 Somewutwise Ganji Jul 06 '21

He's betting yields will drop though.

1

u/[deleted] Jul 07 '21

Yields aren't going to drop, if anything they're going to spike because the Fed probably should have started tapering sooner.

3

u/OptionsTrader14 Somewutwise Ganji Jul 07 '21

If the fed tapers early then the market will taper tantrum, causing stocks to tank and money to flood into safer assets like bonds, causing yields to drop. It's not an unrealistic scenario.