From Jeff Clark, Editor, Stansberry Research Pro Trader:
Widows and orphans have had a tough few months.
Long-term U.S. Treasury bonds – often cited as the safest investment on the planet and suitable for the most cautious investors – lost more than seven years’ worth of income in just the past four months.
Lending money to the U.S. government for 30 years in exchange for a 2% yield turned out not to be such a good idea. Yields are now 50% higher than they were back in July. And these Treasury bonds, or “T-bonds,” have collapsed in price.
But that has given us a fantastic risk/reward setup today…
Let’s start by looking at this chart of the iShares 20+ Year Treasury Bond Fund (TLT)…
TLT peaked at more than $143 per share back in July. It’s now trading around $121 per share. That’s a loss of more than 15%