For me I will always look at what inflation is doing and what the yields are on the 5 and 10 year treasuries. If the fed has to overshoot with rate increases in order to kill inflation, then at some point the yields on certain treasuries may be in excess of the inflation rate. If that happens I would swap over to a treasury with a yield in excess of the inflation rate. The timing will probably to be tough but that would be my goal.Originally Posted by RyanJ
Brilliant guy that has either voluntarily removed his content from YouTube, or was forced to remove his content. This captured video was produced in 2020 for reference. While it is a long link, just click and watch it in it's entirety.......
https://web.archive.org/web/20200822...An-Ay8tjE74%3D
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IMO, the interest rate changes are irrelevant, completely and totally.
NO ONE is going to do wrong by placing $10k/person/year into I-Bonds.
They are one of the safest ways to diversify your investment portfolio.
Anyone focused on squeezing the maximum from cash, will lose eventually.
It's much, much better to play the long & steady. Diversify, invest, wait.
The problem with IBonds is you can only put 20,000.00 per year in them. Also, if you can get a 5 or 10 year treasury, that is guaranteed by the same government, in excess of the projected inflation rate, then why wouldn't you buy treasuries? A 0.5-1% difference in yields can make a big difference if you are allocating a few hundred thousand dollars to the bond portion of your portfolio over the years. You need to be diversified in your bond holdings. You can use Bonds or TIPS for inflation protection and use Treasuries to hedge against lower inflation rates. There is no certainty over inflation over the next 10 years either way.
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