/biz/ - Business & Finance

boomer shit

They wont crack 5% yield, so why should anybody

My I Bonds have been pretty comfy holds, I put 10k in Dec 2021 and another 10k Jan 2022

>>53682354
fpbp, almost fell asleep reading the OP it was so boring

>>53682375
Series I savings bonds yield 6.89%.

CapitalOne is offering an 11-month CD with a 5% APY.

26-week Treasury bills yielded 4.89% on Friday. It could hit 5% later this year.

>>53682354
Yeah, but you ARE saving some money, right anon?

>>53682351
I bought some 6% coupon Kohls corporate bonds the other day. They are trading around 75-80 cents on the dollar, so the ytm ends up being higher than that. I figure that Kohls will make it to the 2033 maturity date, even though I'm not very bullish I'm sure they'll be able to keep the lights on. Haven't seen any other corporate bonds that have caught my eye, but I'm looking.

>>53683094
Interesting. 9.6% for a BB+.
Did you find that with a screener, or were you researching Kohls securities, or what?

unless you're gunna die in under 10 years don't touch fixed income... leave this shit to be bid up by insurance and pensions who are forced to buy. you won't even beat inflation.

>>53683348
Yeah, government bonds may be artificially expensive because some institutional investors are required to buy them. Maybe investment-grade bonds generally.
That doesn't necessarily mean we (non-elderly investors) shouldn't touch them. Underweighting them in our portfolios seems fine too. Also, junk bonds aren't affected as much by this.

>>53683309
I found it with the screener on my brokerage. Just sorted by ytm and went through filings looking for companies I don't think would default.

Feeling comfy with a 5% CD, but frankly the amount of purchasing power lost due to the hyperinflation from the last two years makes me feel so shit about having savings at all.
Got a real bad feeling inflation will double peak like in the 70s too.

>>53682354
>>53682375
>>53682467
>>53683348
>buy bitcoin one year ago
>you are down 48% nominal
>buy nasdaq one year ago
>you are down 17%
>buy gold or sit on cash one year ago
>you are dead even
>roll CDs monthly starting one year ago
>you are up 2-3% and the next available 3mo traunch will be around 4.5%
>buy marginally undervalued make-whole corporate notes a year ago
>you are up the difference plus you've collected one or two coupons 5% or more
you guys aren't even amateur capital allocators and you can't time markets at all, the only timeline you can perceive anything on is a matter of weeks and you gamble everything you have without no hint whatsoever of even a simple risk-adjustment calculation
did you even know that you can buy a bond one week then sell it a bit later?
>but inflation is why i shouldn't even learn
lmao

>>53683630
Based money manager.

>>53682351
CDs nuts boomer lmao

bought 10K of I-bonds last year, and I've been rolling T-bills since May....it's comfy as fuck

>>53682375
Treasuries are exempt from all state/local taxes, this could be huge depending on where you live

>>53682981
of course fren

>>53682628
20-year is also pushing towards 4% again, that's tempting

>>53683630
CDs, money markets, t-bills are all pretty much cash positions. You aren't gaining anything but nominal yield, its a redenomination, its fake ponzi yield. Like a shitcoin with an APY based on minting new tokens. That's how the fed and gov pay the interest.

You get back a tiny fraction of what you lose in dilution. The fed has printed 6-7% of the money supply every year, before covid, when CDs paid nothing, let alone when they increased it 40% after covid. You're 4.5% on cash you'll get for a few months goes almost nowhere into making that up.

Yeah you can time the market with cash, but don't cheer the 4.5%, retard. Its a short position. You haven't made anything unless you are able to buy real assets at lower prices to increase your holdings of real assets in the end.

>>53682351
There’s really no point in buying even the highest yield bills unless you’re looking to park 6 figures worth of cash. Under that and it’s not worth the time it takes to enter your password on the Treasury website.

>>53682351
Is now the time to get into bond-ETFs? They have dipped quite a bit and I think about DCAing into one that pays monthly divvies (3.6%).
I know powell said they're not done raising rates but I dont think they're going too hard on it. As soon as the FED is talking about rate cuts it should send bond-ETFs higher.

>>53684655
>Under that and it’s not worth the time it takes to enter your password on the Treasury website.
cringe desu

>>53684687
Horrible risk reward, the yield curve shows the market is heavily pricing in a return to lower rates. If anything but a return to pre-covid rates happens, you lose, and if inflation and rates rise you lose massively.

Only buy short term as dry powder in case asset prices go lower, or you want to make a high risk bet that interest rates tanks even more than the market already expects.

>>53684655
Yeah, that's fair. If your brokerage has a good default money-market fund, you'll get nearly as much interest from that as from T-bills, and you won't have to think about anything or deal with the TreasuryDirect website.

>>53684853
You can just buy a t-bill ETF. But like the guy said, you're thinking about pennies here unless you have $100k+ in cash. It should be thought of as cash, you will never generate real yield long term with gov debt. The interest is just paid by more gov debt, more dilution, like a high APY shitcoin, your piece of the pie, the total money supply, will decrease long term.

>>53684370
no thanks, I rather go with stable coin farms at 25%+ yield if I feel scared

>>53684370
Holy shit so the $500 you make on every $10k is except from state taxes?! Wow that saves the savage person $0-25 for every $10,000 invested!!!! HUGE!!!!

>>53685210
>2023
>willingly keeping money in crypto
NGMI

>>53682351
>Invest in the ever inflating US dollar
Yeah no thanks, I'd rather invest in an ever increasing industry (thanks to the US being run by retards).

Or gold, gold is always better than USD.

>>53683626
Yeah. Unexpectedly high inflation makes you think, "I should've borrowed money. Or just consoomed."

>>53684350
gotteem

>>53682456
Definitely comfy. Are you buying in 2023?

>>53687819
depends on what the next rate is likely to be

>>53683543
Come on dude you think kohl's is gonna be around in ten years when department stores are going bust on the reg?

Just buy gold dude. Fuck.

>>53685740
how'd you learn this lesson?

Based thread OP
What rate should I ape into EDV on margin at?

>>53690257
>>53688182
also this

>>53690461
I saw this coming over 30 years ago when the fed started printing so much money.

>>53682351
Been rolling a tranche of 4 week bills since Aug/Sept. last year, plan to let them roll off my balance sheet (my own personal form of quantitative tightening, if you will) between April/May when I anticipate it will be a decent time to prepare for allocating into risk. Got a 12 week rolling off this month, might reload it... I feel absolutely no pressure at all to make any kind of decision. It's an amazing feeling and lets me focus on executing my strategy without worrying about "but muh need to make money". Im getting paid to think strategically and practice patience

>>53690951
yeah nah, not gonna fly me hamndijornbro

>>53691084
Lol why do retard do all this work when you could just buy an ETF like BIL? And you aren't "getting paid," you are just getting the ponzi interest paid by supply dilution. Its like getting 50% APY on a shitcoin that has 100% supply inflation/year and saying HURRR I'm getting paid! Its a redenomination. You'll only win if you are able to successfully short and buy lower to actually increase your holdings of scarce assets.

Still dropping about 60% of my monthly take-home pay into a Marcus account at 3.5%.

I'm getting close to the $250K insured limit, so have to start thinking about where to allocate capital after I hit it. I think I'm going to buy a SFH and aggressively pay it off, let me cash sit as reserves, and then start funding a cash brokerage (in addition to my 401K/IRA).

>>53691198
VUSB SHV big yield (as big as pic)

>>53682351

Bonds holders are based. A very important part of any well balanced portfolio.

>>53683626
I hope so i can sell my tips I bought for cheap when everybody was dumping cause CPI is cooling down

>>53682351
RN i have 135k in all FDIC insured CD's and CD IRA's... honestly it feels good to finally have some 0 risk rewards. i dont participate in the stock market as im not going to pump some boomers retirement bags and ill get at least a million when my boomer parents croak so its not really worth taking any risks for me

>>53682351
Great thread. Bump.

Balls deep in TFLO to ride the rising tide until equities depress. Still have my Ibonds riding from 2020/2021 allocations. A couple thousand T Bills juggling around too.

Even looking at Israeli eMazel Tov Binds if the yields peak above 6%.

>>53690546
Extremely long-duration Treasurys? Those are for pension funds and insurance companies and stuff; I'm not sure individual investors should invest in them. Maybe if you're the founder of a dynasty and you're thinking a couple generations into the future.