We Believe It’s Time To Sell Long-Term Treasury Bonds (NYSEARCA:EDV)

We believe it’s time to sell long-term treasury bonds. Our original recommendation made last October 23^rd was to buy NYSEARCA:EDV, the zero coupon ETF. That’s because we were looking for capital appreciation, not income, and this would produce the greatest total return.

Since our October recommendations, EDV has gained 26.5%, GLD has increased 30%, while the S&P 500 has gained 32.7%. So, during the year long bull market, our conservative allocation of stocks, long-term bonds and gold, did well.

But it’s time to sell. Our sentiment readings for both bonds and gold strongly suggest significant price risk for these two assets. This article will look at why we believe it’s time to sell EDV and other long-term treasury bonds. Gold will be covered in another article.

It’s Time To Sell Treasury Bonds and ETFs With Duration’s Over Seven Years

Below is the same graph we used to forecast bonds last…