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To: Tell It Right

so I stayed out.

So did I mostly. The problem is inflation has over taken my gains last year...4% in short term treasuries verses the supposed 7-9% cpi increase. On the face it looks bad BUT 4% up is better than 20%, or more, down IMO!

The problem is I don’t see it improving soon. Looking at the firms that have huge capitalizations, they do not have revenues to support their size. PEs in the triple digits and dividends of near zero in many of the tech companies. Worse, as individuals retire and begin drawing down their 401s and with fewer workers buying into 401s, things look bleak to me especially with the FED trapped into raising rates to where they should have been to rein in the crazy deficit spending Congress and administration. Remember, cash, stocks, and other financial paper is exactly that, paper. A Fahrenheit 451 is coming.


18 posted on 01/03/2023 6:04:09 AM PST by Mouton (The enemy of the people is the media )
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To: Mouton
I'm about 30% into long-term treasury funds like TLT and PRULX. I did that because historically those rise when stocks crash. Those do have dividends, but they're main selling point is they act as a hedge against stock crashes.

But not this time. As you pointed out the treasury rates have risen, which makes treasury prices fall. So 30% of my portfolio has declined along with the stock market. The other 30% is spread out across various bond funds (which also have dropped some) and two money market funds waiting to buy at the bottom of the Biden Bust.

24 posted on 01/03/2023 6:25:42 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Mouton

We bought some Series I Bonds last year when the were paying 9.6%, but you are limited to $10,000 per person a year and pay a penalty if you cash them in before five years. I Bonds are currently paying 6.89%.

https://www.forbes.com/advisor/investing/what-are-i-bonds/


34 posted on 01/03/2023 8:38:02 AM PST by Bubba_Leroy (Dementia Joe is Not My President)
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