Using UltraShort 20+ Year Treasury ProShares (TBT) To Hedge Inflation

July 21, 2009 12:12pm ETF BASIC NEWS NYSE:TBT

t_eidelmanTom Eidelman, vice president of Eidelman Capital Management, came out with a video yesterday detailing why his company is chosing the UltraShort 20+ Year Treasury ProShares (TBT) as a hedge against inflation.TBT seeks daily investment results, before fees and expenses, which correspond to twice the inverse of


 the daily performance of the Lehman Brothers 20+ Year U.S. Treasury index. He states that the treasury will have to issue three times more debt this year as they did last year. Using a supply and demand analogy, he bet’s the treasury will need to entice buyers with higher interest rates, causing treasury bonds to fall. (see the video below)

Interestingly enough, Tom wrote an article on leveraged funds for Barrons Online back in January of this year stating the pitfalls of leveraged ETF’s. His article titled, “One-Day Wonders” can be found: HERE

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