Stu, If buying callable bonds were my only tactic, then, "Yes", I'd be facing headwinds. But, in fact, the situation is far, far worse. No matter the strategy, no matter the tactics, all investors and traders are screwed by the Fed's shenanigans. What any of us are doing right now amounts to rearranging deck chairs on the Titanic. That's a tired, over-used metaphor that makes it no less true. 2008-2009 was merely the mildest, most normal of corrections compared to what lies ahead. Most investors will see 60% to 80% of their present value wiped out. So, yeah, I'm having fun right now making the fat returns I am. But I know full well all of them will come under attack and that much of them will disappear. We're in asset bubble driven by the Fed's decades-long, accommodative monetary policies. Every penny of those ill-gotten gains will be reversed, and then a whole bunch more, because markets always over-correct. http://www.portfolioprobe.com/2011/06/17/bubble-anatomy/bubb... So, what am I doing to protect present wealth? Taking money of the table and rewriting my investment plan, in which a lot more emphasis with be placed on 'hedging' than 'speculating', both of which are concepts poorly understood (much less used effectively) by the so-called 'average investor' who reads little and thinks even less. But for those who do want to get ahead of the tsunami, work your way through Taleb's books and technical papers. His proposed escape path is the only viable one. Charlie
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