1, Long Risk-Free Duration via 30y UST (or TLT, ZROZ) Until market sentiment/positioning pivots to deflation & insolvency expectations → long end yields drop/bond prices ↑ (convexity), SELL...
2. BUY Gold on dip w/ UST gains proceeds
For the sake of comments, let’s not debate inflation vs deflation, or “all good 👍” vs ”insolvency” - rather, assume deflation + insolvency a given.
Comment on the trade itself: Is this trade construction & strategy the best way to play deflationary shock? Anyone have a better risk adjusted return?