iShares 7-10 Year Treasury Bond (IEF)
I have entered a longer-term share position in IEF, an exchange-traded fund based on 7- and 10-year U.S. Treasuries.
I based the trade on Elliott Wave analysis that suggests that an end to the 5-wave price decline from the July peak of $114. The analysis, under Elliott Wave theory, suggests a large retracement to the upside. The fund pays a monthly dividend at present prices and rates of 1.82% annually.
Basically, it’s a good parking spot for unused funds, providing some dividend income and the chance of capital gains.
By Tim Bovee, Portland, Oregon, March 13, 2017
Tim Bovee, Private Trader 
[…] Previous PostThe Week Ahead: Money policy, prices, retail, housing, industryNext PostIEF Analysis […]
LikeLike
[…] shall explore setting up a long diagonal play, composed of calls, on the share position on IEF, the 7- and 10-year bond exchange-traded fund, in order to give it some extra […]
LikeLike
[…] March 13 I opened a shares position on IEF (see the analysis here), based on Elliott Wave analysis indications of a reversal to the upside. To multiply potential […]
LikeLike