Thursday, November 11, 2010

Contrarian play on the upcoming Permanent Open Market Operations (POMO) by the FED ala 600billion buy up of US Treasuries

Like this, most investors dump large chunks of US Treasuries (instead buying gold), US Fed buys up UST's via POMO, but yields stay high and increase (long dated US bonds), USD is bid, interest rates increase and market stays risk averse at best stocks struggle to rally.

dates of the POMO (NYFED)

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