this post was submitted on 04 Oct 2024
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[โ€“] [email protected] 21 points 1 month ago (20 children)

Yes and good luck finding a 8% treasury (and please let me know if you do) ๐Ÿ˜†

[โ€“] [email protected] 7 points 1 month ago* (last edited 1 month ago) (19 children)

The DOW grew 25% over the last year.

The S&P grew 30%

The NASDAQ grew 35%

What are you doing buying 8% Treasury Bonds?

[โ€“] [email protected] 3 points 1 month ago (1 children)

On the other hand, If I can get $20k a month with one of the safest investments around, I'm not screwing around with the stock market.

[โ€“] [email protected] 0 points 1 month ago

If I can get $20k a month with one of the safest investments around

8% Treasuries don't exist. The current treasury rate is closer to 4.5% during a period of 2.5% inflation. Higher treasury rates tend to be paired with higher Fed Reserve rates, which tend to occur during periods of high inflation. So the hypothetical 8% Treasury will only be available during periods of 5%+ inflation anyway. You're still only netting real gains of 2-3%.

Its a safe hedge against a downturn when you only care about preserving your liquidity. It's a real risk when you consider the possibility of a bull run. You're effectively losing money when equities surge while you're setting on a cash-convertible.

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