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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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55930822 No.55930822 [Reply] [Original]

IM OFFICIALLY FOMOING INTO T-NOTES OOOOOOOOOOOOoooooOOOOOOOooooooo0000000ooooooo

>> No.55930830

I'M ALREADY 100% IN AND ROLLING OVER ONCE A MONTH OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

>> No.55930831

>>55930822
Dude, if they go up you lose money

>> No.55930906

>>55930831
He is waiting for maturity dumbass. This site is insufferable.

>> No.55930939

>>55930822
The higher the interest rate a bond has, the shittier the bond is.

Ever heard of junk bonds? They offer very high interest rates, but they are junk because you don't get your money in the end.

Treasury bills are equally worthless because the government will just inflate away the value of the dollar faster than the interest rate of the bond.

>> No.55930950

>>55930830
YOU TOO, OMG IS EVERYONE SLURPING TREASURIES?!!!!!!

>> No.55930967

>>55930939
>Treasury bills are equally worthless because the government will just inflate away the value of the dollar faster than the interest rate of the bond.
do you even realize that they have to issue debt at higher rates to do that? the cycle of me slurping that risk-free 5.25% is unstoppable

>> No.55930975

>>55930950
RISK FREE COMPOUNDED RETURNS NORTH OF 25% OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

>> No.55931024

>>55930830
im waiting for these high rates to cause some kind of market disaster, then buy crypto (which crashes hopefully). the problem is tradfi->bank->coinbase takes 1-2 weeks with tradfi withdrawal limits and bank bullshit.

the question is: is having money sitting on a CEX waiting for an EoY crash worth more than 1%?

>> No.55931147

this is retarded. you can open a no penalty CD for 4.5% interest and pull out when a better investment opportunity comes IE buying property.

>> No.55931177

>>55930975
OHHHHH I JUST SLURPED AGAIN, FEELS SO GOOOOOOOOD. THANK YOU FED, PLEASE RAISE MORE DOT POINTS TOMORROW.

>> No.55931213

>>55930822
Yeah, the price of everything doubled in 3 years and they’re saying inflation is 3%. Those rates are good only if you believe the numbers cranked out by the three letter agencies

>> No.55931233

>>55930822
Now. I'm waiting for 7%

>> No.55931456

>>55931147
Even better, get a savings account with 4.5% interest.

>> No.55931556

>>55931024
You can easy get 5% on stables
But it will be an eoy run

>> No.55931575 [DELETED] 

>>55930967
>risk-free
The usa can default. People talked about it a few weeks ago.

>> No.55931585

>>55930967
>risk-free
The usa can default. People talked about it a few weeks ago

>> No.55931730

>>55931585
What does a government default even look like.
I can imagine there's any safe asset in that scenario

>> No.55931742

>>55931730
Meant to say I cant imagine any safe assets in that scenario
What i can imagine is the smell

>> No.55933031

nice, very nice
now let's see the face value.
what about duration risk?
do you really think these levels are sustainable?
when something seems too good to be true,
it probably is

>> No.55933054

>>55930822
dont buy these, its immoral. even if you can amke money you are making money off the promised enslavement of the next generation

>> No.55933095

>>55931585
If a country issues its own currency, it can literally only default if it voluntarily chooses to default.

>>55931730
>What does a government default even look like.
Might want to look into Greece and Argentina.

>> No.55933121

>>55930939
>government will just inflate away the value of the dollar faster than the interest rate of the bond.
Isn't the whole point of high bond rates to fight inflation?

>> No.55933294

>>55933121
>Isn't the whole point of high bond rates to fight inflation?
No. The whole point of high bond rates is to trick the unknowing masses into believing the central planners are actually fighting inflation.
If they wanted to actually fight inflation, they would raise the fractional reserve requirements above 0%, they would stop expanding government spending (which is borrowing from the fed), etc.
These current rates may seem "high" but they are nowhere near high enough to do anything because the real inflation rate is at least 3 times higher than the current bond rates.

>> No.55934006

>>55930967
If the rate goes up further, your bond decreases in value. You lose money.

>> No.55934022

>>55933121
The whole point of high bond rates is to get people to buy them.

High interest rates on borrowing fight inflation. High interest rates on treasury bonds create inflation because the only way the government can pay this interest is by printing more money.

>> No.55934028

If you don't understand bonds, I strongly advise against buying them. Buying bonds at a time like right now is how you get rekt. There is a reason nobody is buying.

>> No.55934032

>>55930822
just buy CDs instead, I've seen them as high as 5.45% and you can get monthly compounds on a lot of them that are over 1 year

>> No.55934435

My 8 week t-bills just opened at 5.42% while my rent is the same as in 2017 lel

>> No.55935161

>>55931456
>lose it all after your 4.5% interest online only bank rugs all the deposits

>> No.55935174

>>55934028
>wants all the bonds for himself
not falling for your tricks

>> No.55935201

>>55934435
KEEP SLURPIN MY MAN, KEEP SLURPIN THOSE STATE TAX FREE TBILLS

>> No.55935322

>>55930939
>The higher the interest rate a bond has, the shittier the bond is.
>Ever heard of junk bonds? They offer very high interest rates, but they are junk because you don't get your money in the end.
OP is specifically talking about 2-year United States Treasury Notes, not bonds issued by private corporations. Corporations sometimes fail to pay what they promised, yes, but some of the biggest institutions in the world are betting that these bonds have virtually no credit risk, i.e. virtually no chance that the US federal government will fail to pay what it promised over the next two years.
>Treasury bills are equally worthless because the government will just inflate away the value of the dollar faster than the interest rate of the bond.
The yield already reflects the bond market's expectations of the future value of a US dollar. The bond market doesn't seem to be predicting US dollar hyperinflation in the next two years. So if you're right, you could make a lot of money shorting these bonds. You're probably not right.

>> No.55935337

>>55935322
>So if you're right, you could make a lot of money shorting these bonds.
I've seen a lot of people who don't belong in the past week suggesting this exact play. Nobody here is that dumb, you have to go back.

>> No.55935933
File: 566 KB, 630x460, 1690809967649108.png [View same] [iqdb] [saucenao] [google]
55935933

my monthly SWVXX payments are equal to one of my weekly paychecks at this point
is this what it felt like to be a boomer when interest rates on savings accounts were double digits?

>> No.55936021

>>55933294
solid points

>> No.55936038

>>55935322
>>55935337
Why would anyone have any interest in these products whatsoever?

Black people are having 5+ children and can't even get a credit card.

>> No.55936040

>>55935933
>is this what it felt like to be a boomer when interest rates on savings accounts were double digits?
inshallah my brother in SWVXX, this is why nobody bought stocks in the 70s

>> No.55936042

Imagine investing in US bonds and then you see your capital go to some sheeboon shaniqua who squanders it and says fuck white people the following month.

>> No.55936309

>>55936038
Short-term US Treasurys, like OP's pic related, are like savings accounts. You earn interest and you can easily sell the security if you want cash quickly.

Longer-term Treasurys are useful for investing money for the long term and for diversifying other things in an investment portfolio, like stocks.

Sometimes there are rules that require an institution (banks, pension funds, and insurance companies, for example) to own Treasurys. So naturally they're interested in these products.

>> No.55936458

>>55934028
Of course I'm not buying bonds, I'm buying bills

>> No.55936472

>>55930822
>make 5% per year
>inflation is 15%
Congratulations your money lost 10% of it's purchasing power in one year.

>> No.55936500

>>55936472
What else are you gonna do with your money? Gamble with it into on crypto? The S&P500 only makes 10% on average per year, so that too is under inflation and all world ETFs are only between 5-8% annual yield. As far as safe investments go, t-notes are becoming very attractive at 5%+.

>> No.55936518

>>55936500
Buy gold you absolute retard if you don't want inflation to eat away your savings.
If your "investment" can't beat inflation you're losing money and your strategy is shit.
75% gold because it fluctuates and you might be locked down a few years
25% crypto

>> No.55936533

>>55936518
are you retarded? Gold has a by far the lowest annual yield out of all those options. Gold is currently at +2% this year whereis the S&P500 is at +15%.

>> No.55936541

>>55936500
This game of musical chairs is getting crazy. It’s going to be interesting to see what happens when the music stops. We must be in the final seconds now if these short term treasuries are all we got left to keep the whole system afloat

>> No.55936621

>>55936533
remember when /biz/ had smart people pretending to be stupid instead of just stupid people?
(neither do i)

>> No.55936630

>>55936533
yeah but precious metals won't crash like the market will - at least not permanently. In fact they'll pump after the initial panic. See March 2020. I remember it clearly, they were paying you to take crude oil and precious metals were literally impossible to order.

>> No.55936644

>>55930822
Nah this has been a brutal crypto bear market. The inevitable bullrun is going to rip. Who wants to be in some 5% 2yr notes during that? Bought 3 Bitcoin at 17k last year buying ETH on the dip this year. DCA until moon. Simple as

>> No.55936655

>>55936644
he doesn't know you can get 5.2% in a MMF that you can exit in 24 hours for liquid capital, no penalties, no loss of profit.....
Pathetic.

>> No.55936657

>buying bonds before August CPI
You gonna get rekt

>> No.55936663

>>55936657
Get Jackson Hole'd son

>> No.55936671

>>55933054
not if the next generation buys bitcoin

>> No.55936702

>>55936630
the argument that anon made was that it's stupid to invest if your annual investment yields can't beat inflation. Gold can't beat inflation. Speculating on a huge market crash is an entirely different topic.

>> No.55936755

>>55930975
its always quoted in YEARLY terms brainlet. you get 5% APY on a 3-month T bill only if you kept rolling 4 times.

>> No.55936969

>>55931147
>>55931456
>just pay state tax on those gains goy

>> No.55937106

>>55931456
My bank just bumped me up to 5.05%, I literally can't lose.
>>55936969
>state tax
I like in Florida, what's "state tax"?

>> No.55937354

>>55936702
The yield is meaningless if the underlying can lose >25% of its value over a period of weeks

>> No.55937381

>>55930975
You're an idiot and have no money.

>> No.55937392

>>55930939
That's like saying the higher the P/E the worse the stock. It's a one-dimensional brainlet take.

>> No.55937415

>>55930822
wait i can get 5% free money yearly risk free?

why are people holding 3% divvy stocks rn?

>> No.55937440
File: 24 KB, 720x588, 1688698871431240.jpg [View same] [iqdb] [saucenao] [google]
55937440

>>55930939
>The higher the risk free return a bond has, the worse the bond is.

>> No.55937486

How can I hold T notes as europoor? Banks here give 2% maximum on savings account

>> No.55937517

>>55930967
Are you stupid?

>> No.55937616

>>55931456
or just buy sgov

>> No.55937628

>>55937415
>dividend stocks dont grow

>> No.55937850

>>55937628
they seem pretty flat in past 10 years

>> No.55940152

>>55936969
>treasury bills are tax free

dumbass

>> No.55940172

>>55936518
>buying gold for returns
if you have less than mid 7 figures and you're buying gold you're just wasting your limited time on Earth hedging a position that doesn't matter

>> No.55940295

>>55931585
usa already defaulted on russia last year

of course they said it didn't count and that russia actually defaulted because countries refused to process their payments lmao

>> No.55940302

Nice attempts at a fake top-signal itt, i won't be manipulated though.

>> No.55940366

>>55937392
But that is the case 300+ P/E nvidia is a garbage stock full of hype. Tulips.

>> No.55940813

>>55930822
Short USD/JPY when they start dumping bonds free money

>> No.55941435

>>55940152
Free from state and local taxes.