David Morgan: Shorting the Bond Market is the Next Big Trade

August 10, 2012 By 6 Comments

Silver Guru David Morgan calls a bottom in gold miners, and states that shorting the bond market is the next big trade.

We agree with Morgan over the long term, the tricky part is the entry point.  Numerous traders have already been burned by shorting Treasuries and watching as the 10 year dropped to an unthinkable 1.39%.
While the Treasury market is unquestionably the largest bubble of all-time, predicting exactly when the bubble will pop is the difficult part.
For now, we prefer to take the safer side of the same trade by owning physical gold and silver.

Morgan’s full interview with AltInvestors below:


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Comments

  1. Avatar of UglyDog UglyDog says:
    August 11, 2012 at 8:39 PM

    You can be right on the trade, but wrong on the timing.  Manipulated markets only compound the timing problem.

  2. Avatar of Ed_B Ed_B says:
    August 11, 2012 at 11:18 PM

    Another problem in this is that when the bond bubble pops, it will not be a trifling event that staggers the market for a brief time before business as usual continues.  No.  It will be an implosion with HUGE repercussions and losses for many of the investors in these so-called SAFE investments.  In fact, an implosion of the US bond market could well collapse the entire US economy AND the dollar as well.  This would be a VERY serious event that will make the “Great Depression” look like a Sunday school picnic.  Avoid investing in bonds… any bonds… AT ALL COST.
     

  3. Avatar of Ed_B Ed_B says:
    August 11, 2012 at 11:20 PM

    Well, shoot.  I just posted a reply that disappeared.  Awww…  :-(

    • Avatar of helper helper says:
      August 12, 2012 at 12:11 AM

      @ed_b – are you referring to a post that you made this morning?  If so, we apologize for the inconvenience.  We experienced a database error this afternoon which forced us to revert back to the backup we made right before go-live.  Unfortunately some of the newer post that occurred between last night and this afternoon were deleted in that backup process.

  4. Avatar of silver psycho silver psycho says:
    August 12, 2012 at 1:51 AM

    The only Shorts I’m gonna wear have big pockets for my kilo bars of gold and silver

  5. Avatar of silver psycho silver psycho says:
    August 12, 2012 at 1:53 AM

    Instead of shorting the Bonds, Long’ing the Juniors with Gold in the ground.  Most stock analysts say the winners are those that buy quality stock, at low prices, and stay Long, Long for the long term.  Shorting sucks and burns

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