Investing / Investment Management

Out of context: Reply #14

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  • doggydoggdog0

    What about I Bonds?

    doggydoggdog 0Permalink
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    • Ask yourself - what is a bond? How is its value determined, is its yield higher than current inflation etc etcshapesalad
    • Premium bonds - yes! Get some USDC on polygon network and put it in https://pooltogether…shapesalad
    • The risk with I Bonds is that official inflation is understated vs real inflation. Headline inflation=8.5%. But Gas+48%, Fuel oil+70%, Food at home+10%monNom
    • And then housing is supposedly up only 5% from last year, but anybody buying a house right now knows that number is off.monNom
    • Case Shiller says +30% over the past 2 years.
      https://fred.stlouis…      monNom
    • ibonds paying 7.12% right now. So you are basically buying a guaranteed, but not total loss. And I don't believe they have the upside potential.monNom
    • IE if you could buy a 10year treasury at 7.12%, you're paying $0.50 on the dollar, and you could sell that for more if rates/inflation goes down...monNom
    • ...of course 10year treasuries currently pay 2.72%, so that strategy isn't going to work out so well.monNom
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