On March 9th, 2020, the iShares 20+Year Treasury Bond ETF peaked at $179.70 in a massive “blow-off top”. You might remember that stocks, gold, and crypto were all in freefall back then – as the “Covid crash” rattled global markets. Now, nearly five years later, gold is up 80%, the S&P 500 is up 160%, and bitcoin is up about 2,500%. That bond ETF, though, is down roughly 50%. Here are three reasons why scaling into the fund could be a wise play.
1. Long-duration Treasuries have more upside potential than short-dated ones.
When some folks think of US Treasury bonds, they picture “boring” assets that pay interest and hardly move at all. But long-dated Treasuries are different: they tend to be highly sensitive to things like interest rates and inflation. And in the right market environment, that sensitivity can lead to major rallies for the notes.
The iShares ETF (ticker: TLT; expense ratio: 0.15%) tracks US Treasury bonds…
