By Thursday’s close, all the bulls could do was curl up and lick their wounds after a free fall in stock prices sent investors running for the exits.
In fact, by the end of trade, Wall Street had put in its worst day in over a year with the S&P more than 10% lower from the May 2nd high of 1370 – that officially puts the US stock market in correction territory.
Whenever markets make sharp moves such as this, Fast Money always tries to bring you insights from a wide range of pros that may help you navigate the chaos and confusion.
Following are the gang’s thoughts on ….. bonds. Or click below for the impact on another area:
- FM IN-DEPTH: Correction Playbook – Stocks
- FM IN-DEPTH: Correction Playbook—Oil (Web Extra)
- FM IN-DEPTH: Correction Playbook—Gold and Precious Metals
- FM IN-DEPTH: Correction Playbook – S&P Technicals
- FM IN-DEPTH: Correction Playbook – Dollar
If you’re looking for safety and plan to get into the bond market Joe Terranova suggests hiding out in the LQD – an ETF made up of a basket of corporate bonds.
Trader Brian Kelly suggests looking at a long position in 2-year US Treasury, which could potentially catch a bid after Bank of New York Mellon announced plans to charge customers who hold large amounts of cash in its bank. "Why wouldn’t they just put their money in the 2-year Treasury?” he says.