Hubert Senters here.
Let’s take a look at this question from a viewer says ‘’hi, I’m a past member of Mr. Senters.’’ That’s pretty funny. Hubert is my name. I remember this. I remember him recommending a type of bond trade but I’m unclear about the details of a trade so I’m not going to be able to go into how trade bonds or even teach you one particular set-up in a two minute video. That’s going to be impossible. But I’ll try to help you out.
I recently read an article stating that bond yields would drop to 1 percent or less. They are in the process of doing that. Would it be possible for Hubert to outline how his bond trade could be used to take advantage of this drop? Yes. Thanks in advance. Any suggestion sorry for the vagueness of my email. Dennis, no problem. So here’s what you’re going to do. First you need to figure out what market you’re going to trade. Are you going to trade the 10 year, the 30 year or the bund?
All you have to do is you’re going to track that bad boy. Let’s go 30 year bond is very popular in our country. So this is the 30 year bond as the yield goes lower than the bond futures will go higher. It’s an inverse relationship so all you have to do or want to do is just get long some bonds, okay. So as the yield goes down these things will go up.
The 10 year will, the 30 year will, the bond will, the bund. So here’s the 10 year. There you go. It’s going up. Here’s the bund at FGBL. There is the bund and as you can see as interest rates have been dropping these things have been going north so not interest rates. As the yield goes lower the futures will go up. Now, don’t try to make it any complicated than that or it’ll just fry your brain and you’ll make a bad decision instead of a good decision if you try to overthink it you will lose money.
Now, it doesn’t always happen that way but it’s a good rule of thumb as interest rates go lower or as the index it’s got an inverse yield curve there basically futures will go up and yields go down. You can think of it this way too as interest rates go down. Like on your mortgage or any loan you have then the price of the futures will go up if that helps you out any at all. So that’s my advice and I hope it helps you.
Mark Helweg is going to be doing a special webinar on ‘’How to Potentially Predict Big Swings in the Market using Nature’s Own Golden Ratio.’’ It’s happening Wednesday, July 10th at 8PM EST. I will HYPERLINK you through this form so you can click this big yellow button that says claim my spot now to register for the webinar.
Good luck. Hope it helps. See you on the next video.