Nov 05, 2009 - 1:47 AM EST
TraderRob submits:One of most common and least sexy trades throughout the global hemispheres of market movers is the U.S. Treasury bonds trade. Those brave enough to dive long into equities or commodities on the shoulders of the current are both delusional and progressively dwindling in numbers.
This has rebuilt a twinge of respectability among current traders, as a "topping out" formation is building among equities in recent weeks. Searching for a fruitful tree still standing to shake, the smartest guys in the room have already begun talking about the money to be made by shorting the U.S. government's debt. In an environment wrought with risk, limited reward and potentially devastating geopolitical factors, why not short the only asset that is still ridiculously overvalued?
Source: Seeking Alpha (Nov 05, 2009 - 1:47 AM EST)