Selling Out Bond Positions Today
There is too much company in the QE 2 play. In Reading Greg Weldon’s letter last night, part of John Mauldin’s Outside the Box series, it becomes apparent that there is too much company in the long bond trade that has ballooned over the past 4 to 6 weeks. So we are getting out of bonds and watching. The consensus is that everyone can make money on the trade because there is one player, the FED, on the other side who will make it work. When the stock, gold, and short dollar crowd also pile on the whole concept you have a very high risk situation if any surprises come along.