I have been tracking the Direxion 10 Year Note Bear 2.5X Inverse ETF (DXKSX) to monitor how well it does at tracking the upward yield pressure we have been predicting in the 10 Year Treasury note. So far the strategy appears to be playing out fairly well. The ETF is up over 11% since early March when I first started tracking it:
If the 10 Year Treasury yields continue their push towards 5.5% as we have predicted it is safe to expect that this ETF will continue to capture much of that return.
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2 comments:
Okay,okay it isn't an ETF. It is actually a mutual fund, and it has a very high minimum of $25,000 as well as a high expense ratio of 1.75%. Definitely not a suitable investment for most investors, but it is still interesting to track . . .
I purchased this mutual fund nearly a month ago. I own it in 3 different accounts. My initial purchases were for $2500 not $25K. I have added to it 3 times in $250 or slightly more increments. The only trouble I have with it is that it "IS!" a mutual fund and if I wanted to own it with some tech procceeds in anticipation of a late summer bottoming in Tech as usual, I would have to pay the penalties for pre-6 month ST trading (selling). I have been googling around to find "The" ETF that would replicate this great investment in a profligate nation voting itself largess. Definitely a great investment for ALL investors. The cycle of easing in rates is ending but stagflation has only begun to assert itself. The neolithic laws of supply and demand have trumped the Laffer curve and created a "U" turn. Anything with any value has now been monetarized with the new currency called the ETF. As value continues to flee the most abusive fiat linen curencies, rates will be forced higher. The 10 year is headed for +6% in the next 18 months as the next leadership pod will inherit Newton's law on momentum.
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