Greetings RTV subscribers. Welcome to your first trade recommendation. Today allow us to introduce you to a cute trade shorting the BOJ and ECB. Its known as The WidowMaker. Why you ask? First a moment of silence for all the Japanese widows who lost husbands shorting BOJ treasuries years ago. Second, lets all lock our windows.........

what about japan?

Question please - "short BNDX" - is there a inverse ETF to accomplish this for less sophisticated folks out here in RVTVland? Thanks for any answers...

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Isn't the "max 5% downside" call a bit too sanguine? With an average maturity of 9 years I am not sure I'd sleep well. Euro Bund Sep 172 calls have a delta of .07, I agree that it's a long shot but we've seen stranger things happen in QE land.

Like the series. The summary is missing to mention that the idea is to "SHORT" BNDX

You could also short BWX or go long euro banks.

Cheaper to short with futures, as some have pointed out. Also, before shorting this, I'd want to know what the breakdown is, esp. how much is Northern European which have euro-zone breakup re-denomination risk.

Nicely focused thinking and reasoning here. Much better than the longer Tesla interview.Good focus, clarity and great editing!

I like the trade, but I'm not sold on the math here. The problem is that I'm losing .75% for the short, and then when I look at it on IB, they are charging me 2.53% to borrow it. I believe I get credit for the sale, so that's saving me a few dollars on my margin because I get the use the cash, but pay the borrow, but seems to me like I'm going to be going backwards at about 2.5% here annually. Yes, this might have a positive value to be short here because the debt is clearly inflated, but I'm paying a near certain 2.5%. You won't catch me long on this trade, and I would love to do it for a .5% or perhaps even .75% fee because I'm getting use of the money, but at 2.5% it's just a bit too rich for my blood. That said, I'm the (wizard) who pays 100% rates to borrow garbage stocks and short them. This just isn't a garbage stock -- it's a government run ponzi bubble and as we've seen with Japan those can go on for a very long time. Bet with the house is generally the right choice. Japan has a lot of debt -- they are going to keep rates low. The EU, I'm in agreement -- those rates are going to rise.

The asset class is definitely vulnerable for a massive sell off. It's almost inevitable. But paying 2X the yield for the borrow is a bit offputting. Conversely can I really triple my yield by buying and borrowing this animal or is that just the investment banks who can do that?

I'm always wary (even though this is Real Vision) when people openly discuss trades like this. Of course, he put together a great case, but if there's anything i've learnt in my time investing, it's to do your own research. As the old adage goes: "Markets can stay irrational, longer than you can stay solvent"

Love this series. Succinct and actionable! Real Vision is the real deal!! Thank you!

Beautiful case. Thanks.

Excellent!