Strategy: Short Market and Go Long on Bonds?

[Mark Heide]

I was watching an interview on WebFN today. I don't remember the persons name, but he claims since last week he was short on the market and long on treasury bonds. He said that he made 14% in the market and 12% on bonds. Anyone want to explain how this works?

Good Luck

Mark

[PokerBabe(aka)]

This guy likely used long SPX (S&P 500) puts and long puts on treasury yields to take advantage of the decline in equities and the decline in bond yields (as bond prices rose). Fairly straightforward type of trade. Babe

[adios]

If he had that trade on as of yesterday I'll bet he wasn't too happy about it /forums/images/icons/grin.gif . In fact for the last 3 trading sessions it's been a loser. Anyway there's a lot of "told ya" when people are interviewed about their trading. Nobody ever loses money.

[crazy canuck]

I don't know how its possible to get 12% return on treasury bonds in a week...maybe he had some interest rate derivative.