How Do Treasuries Lose Money? US Treasury bonds are generally regarded as safe. Sometimes they’re referred to as “risk-free” assets. This is a bit of a misnomer.
While cash may offer stability and security in the short term, the DFA Returns Web chart from 1926 through February 2024 suggests that the growth potential in stocks offers a higher rewarding investment opportunity in the long run.
In investing, a key consideration is the time horizon. There is a general perception that investing is a risky proposition, but this risk can be mitigated by holding investments for longer periods.
"Why would anyone buy a 5-year bond at 3.5% when you could get a 1-year bond at 4%?"
"Why don't I put all my money in a 4-month T-bill and make 4.9%?"
Fitch, downgraded US government debt from its pristine AAA rating to one notch lower at AA+. The Fitch downgrade serves as a reminder of the necessity of diversification, as no investment is entirely risk-free.
It's natural to sit down at the end of the year and reflect on what happened. Here is a short recap of what happened in the markets and the world in 2022.
Investors are always on the lookout, it seems, for new and profitable ways to help make their dollars work for them. One that has come up quite often on our clients’ radars recently is Series I Bonds (or just I Bonds).
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