Bond Rally Over? (David Tepper) Owning $TLT Like Picking Up Nickels In Front of Steamroller? (Doug Kass) Wrong
CLICK IMAGE TO ENLARGE.
Virtually all of our firm's many loyal customers and supporters (as well as detractors) around the world know that Hedgeye CEO Keith McCullough and our macro team have been arguably the most vocal proponent of being long the long bond via TLT on Wall Street.
It's worked out pretty well for us.
Following the release of the Fed's policy statement today, the 10-year yield fell all the way down to 1.92% (from 2.05% before the announcement.)
As you can see in the chart above, it's been a bumpy, but very profitable ride for us.
It's also timestamped. (See below current Real-Time Alerts signal from 4/1/14)
Click to enlarge.
An over 21% return? Not too shabby. Especially when compared to the S&P 500.
It's also important to mention that this TLT position hasn't been without some degree of controversy. It's received more than its fair share of criticism from basement dwellers trolling on Twitter, as well as some more well-known market pundits.
(See tweet below from said gentleman behind computer screen in Boca Raton ... who, incidentally, was attempting to make fun of our position in this particular tweet, despite the fact the he currently "blocks" us. It hasn't worked out so well for him.)
We would be remiss not to mention the grand poobah pronouncement by David Tepper heralded on Bloomberg by Stephanie Ruhle back in September that:
"It's the beginning of the end of the bond market rally. We are done."
Ehh, not so much.
Heck... we even ran a poll on it.
For the record, we remain long TLT.
***In closing, here's a look back at a handful of our inimitable cartoonist Bob Rich's cartoons. We thank you for continued confidence in us. Enjoy!
August 29, 2014
July 27, 2014
October 7, 2014
December 12, 2014
January 6, 2015
January 26, 2015
