/biz/ - Business & Finance

>>53484766

Yes, buying short duration Treasuries is a good idea right now.

Mutual funds are also very good. It just depends on what sector you want to focus on at the moment.

>>53484766
i bonds first, they pay 6.89%. i looked at treasury bonds but i don't have enough money for it to be worth the increased yield vs. just throwing it in a high yield savings account at ~3.5%. that extra 1% of interest a year isn't worth the annoyance of learning how to buy and re-invest/ladder treasuries.

>>53484766
>>53484815
petrodollar is over and this thread confirms it

>>53484815
How short, I was probably gonna cap myself at 2 years

>>53484962

I've just been doing 1 month and 3 month bills right now, only because I want to have cash if stocks dump this year (maybe around fall, or winter).

I'd buy a 2 year note if I wanted to make a play on yields tanking hard. Then you could just sell your notes and get some capital gains on those.

>>53485017
Yields would only tank hard if the Fed decides to drop interest rates heavily right, but with the way inflation is now that seems unlikely

Side note, any sectors that are no brainers for mutual funds

>>53485274

Most likely. The FED rates basically follow the 2 year Treasury. The only rate the FED actual controls is the overnight rate In-between banks, but if the overnight rate is 5% than most of the other rates should go above that, except in cases like right now, when the banks think a recession and a FED pivot is coming. That's why the 30 year Treasury is lower than the short-term bills right now.

It's possible you could have a scenario where the FED is dropping rates, but the long-term Treasuries are going higher. It depends on QE/QT and what Treasuries the FED is buying as well.

As for funds, I'm waiting for the S&P 500 to drop below 3500 before I think about buying any tech, or consumer discretionary focused funds. I'm currently holding my energy and commodity funds, I'm not selling, or buying any more. If the market drops I'll probably pick up some agriculture, industrials and utilities as well.

It all depends on the balance in your portfolio. I'm very heavy with cash and Treasuries right now. I also have a lot in Emerging Market funds, which did poorly last year when the DXY went up, but as the USD drops, my Emerging Market funds should go higher.

>>53485552
I see, thanks for the advice

Just had to buy a new car but other than that I’ve got not many expenses while staying at home, think I’ll just buy some short term treasuries for now while seeing how things play out / get more and more comfortable investing

>>53485675

Hell ya man, it takes time. Don't get frustrated if you don't understand something, just keep studying and keep an open mind.

I've been studying Economics, Finance and Accounting for about 6 years now. I went in not knowing anything and it took a while to grasp everything. Even now I'm still learning. I've also found a lot of the things I original thought, or was taught, weren't actually true. Try not to attach yourself to any person, or ideology. It'll definitely benefit you in the long-run.

Short term treasuries are good for spare cash you'd rather not lose that isn't needed in an emergency stash. You can combine different maturity durations to form a "ladder" so that you can get the best of short and long term rates. Generally longer duration treasuries are supposed to yield more than shorter term ones, but the yield curve has been the most inverted in history for several months now. Uninversion generally happens by longer term yields going up and shorter ones going down, but with all the financial fuckery of the last 3 years who knows how the curve will uninvert.

>>53484766
how much of that do i need to buy to get a catgirl like her?

>>53485734
Damn this is good for me then, will definitely put a few grand in here over the coming months before these short term rates eventually drop

>>53484766
This anon gets it, OP: >>53484837.
First consider series I savings bonds if you won't need the cash for at least a year (ideally not for several years).
Then consider high-yield savings accounts and money market mutual funds (for example, Vanguard's settlement fund yields 4.29% at the moment) because it's probably easier and more liquid than buying Treasury bills yourself.

>>53485784
Is there any catch with high return savings accounts? Can’t the bank just change the rates fairly freely? That’s why treasuries seem more desirable since they’re locked in

>>53485860
Banks want to stay competitive with other banks, but you're right about that risk. Fortunately, you can move your money out of the savings account very quickly.
If you want a guaranteed interest rate from a bank, you can look into certificates of deposit. But you'll be locking your money in for a few months.

>>53485983
Yeah all the CDs near me are only 3% I think there’s 1 with a 4% rate but honestly the short term aspect and guarantee of treasuries makes me more comfortable

>>53486487

Oh, just to give you a heads up. Make sure you buy new issue Treasuries in your brokerage account. Don't buy them off of the secondary market.

fyi when everyone and their mother is talking about fucking t-bills and ibonds
that's when you know to buy out stocks from under them at a discount
eternal goyim I swear

>>53484766
That's a catman

buy your 10k limit of Series I bonds

>>53486622
Nope she’s all woman

Fug et one final bump