We have started accumulating TLT in small quantities and will continue to add as it drops further. TLT is an ETF that tracks the 20 Year US Treasury. The yield on this ETF is currently 3.22 percent but that’s not why we’re buying it. In 2020, TLT was trading close to $170 and today it closed at $88.68 and we expect it to drop further so we started a small position and will DRIP (Dividend Re-investment Plan) and grow our position over time.
For each dollar TLT drops, we will add more to our position. TLT will recover when the Federal Reserve begins cutting rates however we don’t expect that to happen until late next year in 2024 so we think now is the time to start acquiring shares over time.
Our other trade continues to milk the DVN cash cow and we sold more calls out-of-the-money for October expiry and we’ll write a separate post about our transactions on this strategy.
We have also compiled a list of stocks we’ll be diving into as soon as the market corrects over the next quarter or two based on our expectations so stay tuned, stay profitable and stay solvent…