The prospect of ZROZ doubling in a year or two is a historically normal process that has happened over and over again. Why would this time be any different?
Following a classic "cup and handle" calculation. We could see this behavior, where we have another 20 to 25% increase in ZROZ. (It could also coincide with Fed decisions dates).
This applies to EDV and TLT.
Looking at this going much higher about 45% by late October.... quite bold... but !!!
This is the most extreme US Treasury bond ETF. Basically pay some amount and get back face value in 25 years. Inflation would kill these, whereas deflation and falling interest rates will send this to the moon.
Interestingly this pays a dividend in line with other bonds, I looked it up and it looks like the fund has to do this for tax purposes, but the underlying...
Andrew's Pitchfork FAIL-ure to the downside, expect mkt to rest Upper Median Line (UML) break-UP line, good risk. Review how sensitive Zero coupons are to rate moves. Nuff said. Happy Holidays to 1+all. Share the wealth.
For the first time in 2022, ZROZ is trading above the 50 moving average.
It's due for a relief bounce. You can try and play the LONG, now, but keep your stop-loss VERY loose.
Otherwise, Dollar Cost Average into ZROZ to build a long-term position or buy the next pullback.
