BUY ALERT: 15 June 2019

Security Type:

• LONG U.S. FEDERAL GOVERNMENT (TREASURY) BOND ETF – FIXED INCOME
• Dividend or Yield = 2.6%
• Duration 18 years
• MER = 0.23%

Potential Future Action:

• The Greedy Farmer expects to place another order after the U.S. Fed meetings, mid week
• The expected hold period is 12 – 18 MONTHS

Portfolio Notes:

• 5% of $1,000,000.00 is $5,000.00
• The Greedy Farmer often splits stock purchases between registered and non-registered accounts to give more flexibility in managing tax, this will be indicated by a “T” – TFSA, “R” – RRSP, “UR” – US RRSP, or “C” –  CASH in the account type column of the portfolio. In this case, I am reasonably confident in the position so will invest in a registered account.

Security Behaviour:

• Long bonds are inherently risky as a small interest rate change creates a large price change.
• The price of this holding will increase if U.S. government long dated bond yields fall
• The price of this holding will increase if the Canadian dollar falls
• The two above situations may act in opposition to each other in the short term