To The Moon

🌟🌟🌟$iShares 20+ Year Treasury Bond ETF(TLT)$  jumped 2.5% on Tuesday this week on news of cooling inflation being reflected in the US Consumer Price Index for October.   TLT ETF is currently up 3.2% in the past 5 days but down 11.2% year todate.

Can TLT investors finally heave a big sigh of relief that the worst bond bear market in history is finally over? 

TLT, the long term bond market ETF fell more than 50% in price over the past 3 years as yields have sharply risen amid the Feds' relentless rate hike campaign to combat the highest inflation in 40 years. 

However there is hope now  that the only cuts coming will be in the form of lower interest rates in 2024. 

TLT is attractive to investors who expect yields to fall since bonds with longer maturities are more rate sensitive than the shorter maturities.  Bond prices have an inverse relationship with yields. 

There is anticipation that in 2024 that the US economy will slow down.  If that happens then the Feds may cut interest rates and bond prices will move higher. 

TLT expense ratio is a low 0.15%.  Dividends are paid every month.  The current dividend yield is 3.63%.

Wall Street Analysts are expecting that the Feds will keep interest rates unchanged in December.  They are also predicting 80% odds of rate cuts between 25 to 75 basis points by June 2024.

So I believe that $iShares 20+ Year Treasury Bond ETF(TLT)$  has lots of upside potential ahead with rate cuts coming up by next year.  In the meantime, it is good to collect a monthly dividend while waiting for $iShares 20+ Year Treasury Bond ETF(TLT)$  to move higher. 

$iShares 20+ Year Treasury Bond ETF(TLT)$  is my tactical play  to have a diversified portfolio of stocks and bonds.   It also provides me with a great source of passive income while waiting for capital growth.  That is my favourite way of investing. 

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