Bull case for TLT
1) recession . Normally flight to safety so TLT will rise
2) cut in fed fund rates. TLT has long duration so more sensitive to rate changes so TLT will rise more than short term treasury bills or notes
3) TLT has fallen more than 50%
Bear case for TLT
1) treasury debt situation. If US Gov can't solve their debt spiral , people will lose faith and not buy treasuries and this will affect TLT.
However , the Fed can support by being the last buyer of treasuries , so there is a support .
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
