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10 May '23
Navigating the Debt Dilemma: An Investment Perspective
Continue readingThe ongoing congressional standoff over raising the debt ceiling serves as a reminder to review our investment approach. Especially in regard to holding Treasuries. With the federal government’s revenue falling short of its spending, it’s clear that our country’s finances need attention. Behind all the political grandstanding remains the core fact that Federal revenue is […]
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26 Sep '22
Savings Bonds Revisited—9.6% Yield
Continue readingBack in May 2021, I initially discussed the surprising merits of the humble U.S. Savings Bond in my post SAVINGS BONDS – INFLATION HEDGE SERIES. At that time, the Series I bond was paying 3.54%. Today, Series I Savings Bonds yield 9.6%. These bonds are paying 9.62% annually for purchases through October 2022. This rate […]
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01 May '21
Savings Bonds – Inflation Hedge Series
Continue readingArguably, the simplest of all investments—U.S. Savings Bonds—may be the best current hedge against inflation available. As discussed in my prior post, Are TIPS a Good Investment, TIPS are nearly the perfect inflation hedge. Your return is fully protected from inflation since the bonds yield is adjusted based on actual inflation experienced. You receive a […]
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28 Sep '20
Are TIPS a Good Investment – Inflation Hedge Series
Continue readingWith the Federal Reserve “printing” massive amounts of new money to fund Congress’s record-breaking deficit spending, I thought it would be a good time to review investments considered good hedges for inflation. Ideally a good inflation hedge would maintain (or increase) its real value during periods of high inflation. Today’s post will consider Treasury Inflation-Protected […]
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04 Oct '19
Are Bonds Still A Good Bet?
Continue readingWith bond yields near generational lows, it raises the question: is it still worth owning bonds? Given the risk-return offered, are bonds still prudent for long-term investors within a broadly diversified portfolio? For most portfolios, bonds provide “ballast” helping to stabilize the generally more volatile returns from stocks. Historically, bond returns have been lower than […]