Thursday, September 13, 2012

What Would 'Uncle Milt' Think !!!!!!!!!!!

TLT U.S. 20+ Treasury 

The price action on TLT is weakening the bullish scenario appreciably. TLT made a 61.8% bounce off its 200 day moving average but has given that back quite quickly. This does nothing to support a strong bullish argument. A weekly close below the previous pivot and 200 day moving average would be yet another nail in the coffin of the long term bull market investors have enjoyed since 1981.
Rolling T-Bills, albeit boring, is becoming an increasingly attractive portfolio option !!!!!!
My guess is that Milton Friedman would be less than impressed with what the clowns at The Fed are doing with monetary policy. Can you say 'diminishing marginal returns......'??

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