In this weeks newsletter I mentioned that many analysts (ones I respect anyways) feel the trade for the next decade will be short bonds and long energy.
While I agree, I missed the best point on this trade back when TLT was at 123 or so. I am waiting for a nice run up to get along diagonal put spread going on this.
Leaps are not out of the question either. Although those trades take more capital and as such the returns can sometimes lag the shorter 6 months out trades. The nice thing about doing the leaps is you can basically sell way out of the money and only want to capture time decay and let the leap run in the money for a long while.
This should be a very long ride and with those rides, we will see many volatile swings that will make many give up the ship. All the factors are in place to make bonds a bad investment gong forward for a very long time (in my opinion). This Will also effect Cd's at banks and other fixed income investment so steer clear if you can. Annuities would fit into this as well. The locked in rates will lag the upward pressure on interest rates.
As a long term advocate of whole life, it might just be a term and invest the difference decade. Many insurance companies will struggle. Remember that those state funds are for only the guarantee on the policy when a comapny goes belly up. Most of those guarantees are in the 4-5% range.
If you have a universal life policy sold back in the 80's or 90's, you need to have a serious talk with someone and see where you stand.
I would be glad to assist.
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