If stock market rallies in the coming couple months, this trade should do well as people pull money out of T-bills and invest in the stock market again. This will put pressure on T-bills, both long and short term. Should the trade not work out shorter term, due to stock market tanking and people investing in long-term T-bills as safety (a tough scenario in terms of probability I would think), it's still a good longer term trade based on the money-printing folly of the US government. While very little of the "printed" money will actually influence the economy, the full negative side-effects will be in effect; namely, inflation. Warning: this security is double-leveraged, and has counter-party risk (so even if it's the right pick, it may still not work out because of underlying facilitator risks to the institutions backing this security). Thanks to noshoes for the find of this ETF related to long-term T-bill value. How it works: As T-bills go down in value, this security goes UP in value at twice the rate.
$46.01 (02/02/09)
