Owning a treasury.
Pay 1 million dollars for a T Bill paying 0.80 %
If you like the interest income stream, fine
If you need to cash out when the market rate is 3%n nobody is going to give you 1 million dollars for your TBill.
Your loss is bout 15% of what you paid.
Good times, good times
Selling a TBill
Government sells TBills at 1% rate
Later, TBill is rolled over at 3%
Interest on debt is 30 % of Government spend.
Then, interest spend is 90% of Government spend.
Good times, Good times
No one forces us to pick poot investments, we do that to ourselves. I only invest in bonds when they make sense for my situation, which is sometimes I need a parking place for cash and Treasuries have a tax advantage.
At this time I have no bonds and haven’t for some years. For that part of the portfolio I use preferred stocks and MLPs.
And I don’t worry about the things I can’t affect. I worry only about the things I can affect.