This could make you $100,000 or more over the next 12 months…

On July 27 at 7 p.m. ET, Eric Fry and Louis Navellier will reveal a new Supercycle that’s about to grip the markets and how you can leverage this event to potentially make $100,000 or more.

Tue, July 27 at 7:00PM ET
 
 
 
 

Hedge Rising Interest Rates With TBT

Hedge Rising Interest Rates With TBT

ProShares UltraShort 20+ Year Treasury Fund (NYSE:TBT) — The economy appears to be improving, and “real” interest rates are on the rise with bond prices falling. On Wednesday, the benchmark 10-year note fell to its lowest price since October.

TBT seeks daily investment results that correspond to twice the inverse (opposite) of the daily performance of the Barclays Capital 20+ Year U.S. Treasury Bond Index. It invests in derivatives that ProShares Advisors believe should have daily returns similar to twice the inverse of the daily return of the index. It usually invests the rest of its assets in money-market instruments.

The fund is non-diversified and is not rated by Morningstar. Its net expense ratio is 0.93%.

If interest rates rise, bond prices should fall and TBT should rise, because it is designed to move in the opposite direction of the 20-Year U.S. Treasury Bond. So this trade is suggested as a long-term purchase and a hedge against rising interest rates.

Trade of the Day -- ProShares UltraShort 20+ Year Treasury Fund (NYSE:TBT)
Click to Enlarge

Trade of the Day Chart Key


Article printed from InvestorPlace Media, https://investorplace.com/2012/03/trade-of-the-day-proshares-ultrashort-20-year-treasury-fund-nysetbt/.

©2021 InvestorPlace Media, LLC