Sell, Sell, Sell....

With the Federal Reserve's Open Market Committee (FOMC) scheduled to meet again next Tuesday, September 18th, US Treasury prices have risen recently to levels high enough to reasonably expect at least a 100bp reduction in the targeted Fed Funds Rate, even before the Fed meets and even before they begin what is expected to be, a change in policy to be more accomodative. Even though the markets are divided in their expectation of a 25 or 50bp cut in the rate, US Treasury yields have gone far beyond that. So, in a word.....SELL!

Take your profits, buy the rumor / sell the fact, take your money and run, sell and reload, however you think about it or want to justify it, just sell! And do so now before these prices go away and you've lost your opportunity.

In what I describe as the biggest bubble of them all, inflated Treasury prices, the benchmark 10-year US Treasury reached a yield of 4.32%, just a couple days ago. That's down in yield from a recent high yield of 5.30% on June 12, 2007. Has the world gone so awry in 3 months? I doubt it. And the statistics don't support it either. Sure, the chances of a recession have increased in recent days, but the consumer is still chugging along, and inflation is certainly not dead, as evidenced by yesterday's topping of $80 oil.

So, get busy and sell, sell, sell.