shorting long bonds ???

[big dogie]

Is there a etf that shorts long US bonds?? I'm thinking this could be a nice investment if there is such a thing or how would I short US long bonds?

b d

 

[fuji]

You could actually short AGG. It holds long and short US bonds, there might be another bond fund containing only long US bonds.

 

[Mencken]

There may be other ways to try to profit if you think long term interest rates in the US will go up - which is what I think you are wanting to bet on.

And when you say US long bonds I presume you mean government bonds? If not, then you also need to be very careful about the credit spreads that are very high right now.

 

[big dogie]

Yes I am thinking gov bonds,sure not ones offered by GM...lol

What are these other ways you speak of?

bd

 

[Mencken]

There are all sorts of futures and derivative products that are interest rate sensitive...but I'm no expert and you would certainly need an expert if you want to get into a leveraged play, for example. But I would look carefully at Japan's experience over the past 20 years or so before doing it. If we get into a deflationary cycle, which appears possible or even likely, there are no guarantees of higher interest rates for a very very very long time.