Will the Bond Beating Continue? Upside Interest Rate Target Is?

July 17th, 2013

by Chris Kimble

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The chart below reflects how a variety of assets performed over a 70- day period of time, ending July 10th. As you can see the top performing asset was the inverse bond ETF TBF, as interest rates rose sharply during this time frame.

During this time window TBF made three times as much as the S&P 500 and made investors as much in two months as the S&P 500 has for the year!

The next chart reflects a pattern that suggested interest rates were about to "Blast Off and Bonds could get hurt" before it happened (see post here).

The above chart reflected a double bottom in yields and a bullish inverse head & shoulders in yields, suggesting a sharp rally in interest rates was about to take place…and it did.

Will the Bond Beating continue?

If you would like to see what the Power of the Pattern is suggesting now for bonds send us an email at services@kimblechartingsolutions.com to get a complimentary snap shot of where interest rates are headed in the near term according to pattern and sentiment perspectives.

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