James Carville once remarked, “I used to think if there was reincarnation, I wanted to come back as the President or the Pope or a .400 baseball hitter… but now I want to come back as the bond market. You can intimidate everybody.”
I've been slowly building a short position in IEF/TLT in anticipation of the Fat Lady delivering the eulogy for the long bonds. The dubious action in the 10 year last week has me wondering if the bond vigilantes are mounting up an 80's style smackdown.
However, with so much uncertainty out there, I'm being extremely careful with this position. With so much volatility it only takes a 1/2 shot to make a full share.
