-------- Original Message --------
| Subject: | Miracle of the Long-Term US Treasury STRIPS |
|---|---|
| Date: | Tue, 29 May 2012 18:33:22 -0700 |
| From: | Jas Jain <jas_jain |
Miracle of the Long-Term US Treasury STRIPS
Here are the ones that my son and I have had in our IRA accounts with the prices on 02/11/11 and on 05/29/12 with gains:
Maturity Date | Closing Price | ||
| 02/10/11 | 05/29/12 | Gain | |
| 2024 Nov 15 | 53.21 | 75.50 | 41.9% |
| 2025 Feb 15 | 52.34 | 74.77 | 42.9% |
| 2028 Feb 15 | 43.26 | 67.04 | 55.0% |
| 2029 Feb 15 | 40.91 | 64.73 | 58.2% |
| 2036 Nov 15 | 27.03 | 48.53 | 79.6% |
For the past eighteen months I have recommended the one maturing on 11/2036 and it is up almost 80% since the medium-term low on 02/11/11! Before that I had recommended those maturing between 11/2024 and 02/2029 depending upon the relative value. I have been very lucky in picking the best ones at any given time. The biggest beneficiaries are my son and few people who worked at the same firm as he did. The Long-Term US Treasury STRIPS have been the biggest secret kept from the investing American public. One wonders why?
Kirk Here: Strips are like leveraged bets on interest rates so if rates go up, the gains can vanish just as quickly as they came. If you hold them to maturity, you know exactly what you will get so volatility along the way is adjustments to the time value of money. See US Treasuries (US Treasury Rates at a Glance)
Posts
1 comment:
I bought some 2036 strips sometime around 2-2011 for IRA and cashed out with some big gains around the end of the year. I regret not having bought more and also somewhat regret having sold out. I was hoping yields would bounce back so I could make another trade.
Post a Comment