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Thursday, March 14, 2024

Treasury Yield Curve Inversion

If you look at the Treasury yields over the next year or so, you will see that yields in the future are lower than they are now.  This is called a Treasury yield curve inversion.  Interest rare are about to fall and do so for a number of years.  This is smart money's generally educated guess about the future of our economy.

If you are a risk-averse person, buy Treasury bonds with long maturity.i did so in 1994.  I bought $50,000 of Treasuries due
In 2016 for about $47,00.  They yielded 7.5% per year ,(exempt from state income tax) and in 2016 they were redeemed for the full face value of $50,000.  I wish that I had bought $200,000 worth.  (I was a timid investor.)

These are as safe an investment as you can make. If the U.S. government defaults, canned food and ammunition make better investments.

Dropping interest rates on bonds drive investors into the stock market to get better ROI so for those prepared to take some risk, buy stocks.

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