[jrsmc]

Buy gold and hold. Sell the gold and buy 30 year Treasuries when rates hit 20%. Sit back and clip bond coupons for 30 years.

Those who followed that prescription in 1978-80 have been clipping their 20% bond coupons for the past 27 years.

Rinse and repeat. The next opportunity is close at hand.

[riverdawg]

The 30-year Treasury bond peaked at 14.67% in September 1981. The problem with your get-rich scheme is that you have to know that 20% (or whatever your trigger rate is) is the peak. Otherwise, you stand to lose big time, like the “geniuses” at Long Term Capital who thought 10% Russian bonds were a terrific buy in the mid-1990’s.