Monday, January 27, 2014

The Exquisite Timing of TBT

Click to enlarge.

Yahoo's data didn't start at the inception date, but it's close enough for government work.

Moral of the story? Wall Street always has your back!

File:Stab-in-the-back postcard.jpg

TBT Profile

Annual Report Expense Ratio (net): 0.93%

To put it in perspective, 0.93% is roughly double what the average 5-year CD is paying. That's just adding insult to back injury.

Source Data:
St. Louis Fed: WTI Crude Oil Prices
Yahoo Finance: TBT Historical Prices


mab said...

From Mish today:

Don't Want Credit Risk?

Looking for something with no credit risk? Then buy physical gold and hold it.

There is a risk of decline in the purchasing power of gold as the plunge from over $1900 an ounce to under $1200 an ounce shows, but there is no risk of default.

Why not buy dirt or sand? No risk of default and arguably no decline in purchasing power either! Just don't hold paper dollars or treasuries.

The logic of a gold bug never ceases to amaze.

Stagflationary Mark said...


April 6, 2012
Money Watch: Should I borrow from 401(k) to invest in gold?

Q: I'm in my 60s and I am thinking about borrowing against my company 401(k) plan to buy gold and pay back the loan over the next few years. Is that a good idea?

Gold is trading near $1,630 an ounce.

No credit risk in gold! What would it matter if others use credit to buy gold if you have not?

There was no credit risk in housing either! My house was fully paid off during the housing bubble. What did I care if others used credit to buy housing? Didn't affect me!

This mindset was a great comfort to me as my home's price fell relative to that of toilet paper and has yet to fully recover, let me tell you. ;)

In all seriousness, I thought about selling my house and renting for a bit. Decided that I'd just ride it out. Too much effort and expense. Easy come, easy go.

That said, not sure those with a hefty mortgage who bought near the peak are taking it as well as me, nor are those who bought gold with credit near the peak either. Go figure.