A week ago, in a strategy piece detailing ways to handle the looming bond-market crash, I recommended shorting the iShares PLC Markit iBoxx Euro High Yield Bond ETF (LON: IHYG).
Several readers wrote in to say that “not every brokerage lets you buy this.” Some do, in fact: In this day and age, many brokerages let you buy any shares, anywhere. But for those of you whose brokerages won’t let you, I wanted to give you an alternative.
We want a trade that gives us the exposure we want, which is a bet on falling bond prices – both sovereign and corporate – across Europe.
It’s hard to find an exchange-traded fund (ETF) that gives us this type of exposure. Some of the instruments that come close don’t have the liquidity we need to be able to get in and out easily.
And the rest don’t fit the trade profile we want.
However, there’s another way to play falling bond prices across Europe…
Even though I’m technically “semiretired,” I work all the time.
I write, which I love, invest, which I love, am starting up a new venture, which I love doing, and I have lots of friends, all of whom I love.
So my life is busy – very busy – but it isn’t completely full.
I don’t make time to go out and find someone. And – no surprise to anyone – no one comes knocking at my door saying, “Hi there, I’ve wanted to meet you.”
I’m betting that lots of you are in a similar situation.
My good friend Bill told me I was “antediluvian” (which I had to look up) and that I should join this century and go online. So, I did.
Without going into which service I’m on, I’m only on one, all I’ll say about it is… it’s great.
Now let me tell you why – as investors – you need to pay attention to this…