💡Our July 4th sale is on! Get 10% off our bond courses while bond yields are high. Use coupon code summer2024 through midnight ET on Sunday, July 7th! Join Bond Beginners today (our foundational-level bond course): www.diamondnestegg.com/bond-beginners Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters Or get both Bond Beginners & Bond Masters together for even more savings: www.diamondnestegg.com/#_paa2isucf And join our super-supersaver membership for regular market updates & monthly live member Q&As th-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin >>>>>>>>>> WATCH NEXT Our Bond Courses vs TH-cam Membership | Which Is Right For You: th-cam.com/video/H5h4Eyh0hjo/w-d-xo.html Bond Beginners Course Sneak Peak | I-Bonds vs TIPS: th-cam.com/video/uXPzbje1g2E/w-d-xo.html Bond Masters Course Sneak Peak | How To Build A Bond Ladder: th-cam.com/video/p90IDmXn19s/w-d-xo.html >>>>>>>>>> Here is the overview for Bond Beginners: 1. Bond Basics What A Bond Is & How A Bond Works Why Invest In Bonds New Issue vs Secondary Market Bonds Interest Rates & Bond Prices Current Yield & Yield To Maturity Always Remember This! Buying At Par, Above Par & Below Par Different Types Of Bonds Wrap-Up 2. The Risks Of Bond Investing Seven Key Bond Risks Credit Risk Interest Rate Risk Reinvestment Risk/Call Risk Inflation Risk Liquidity Risk Currency Risk & Country Risk Bond Risk Mitigation Strategies Wrap-Up 3. US Treasuries Overview What Are US Treasuries Why Invest In Treasuries Where Can You Buy Treasuries How Are Treasuries Taxed Wrap-Up 4. Treasury Bills What Are Treasury Bills (T-Bills) When Do T-Bill Auctions Happen Where Should You Buy At Auction Auto-Roll When Buying At Auction Where To Find Recent Auction Results High Rate vs Investment Rate Reopening Auctions Cash Management Bills (CMBs) Buying & Selling On Secondary Market Wrap-Up 5. Treasury Notes & Bonds What Are Treasury Notes & Bonds When Do Auctions Happen Buying Treasury Notes & Bonds Auction High Yield vs Interest Rate Floating Rate Notes (FRNs) Treasury Zeros (STRIPS) Wrap-Up 6. TIPS (Inflation-Protected) What Are TIPS When Do TIPS Auctions Happen Nominal vs Real Yields Negative Yields How Do You Adjust TIPS For Inflation Taxes On Phantom Income Secondary Market Liquidity Wrap-Up 7. I-Bonds (Inflation-Protected) What Are I-Bonds How Does I-Bond Interest Work I-Bonds vs TIPS The Annual I-Bond Limit Wrap-Up 8. Agency Bonds The Universe Of Bonds What Are Agency Bonds How Are Agency Bonds Taxed Treasuries vs Agencies Who Might Want To Consider Agencies Yield-To-Call & Yield-To-Worst Where Can You Buy Agency Bonds Wrap-Up 9. Municipal Bonds Our Bond Universe Gets More Complex What Are Municipal Bonds How Safe Are Munis How Are Munis Taxed The De Minimis Rule Social Security & Medicare Premiums Treasuries, Agencies & Munis Who Might Want To Consider Munis Wrap-Up 10. Corporate Bonds Our Bond Universe Is Complete What Are Corporate Bonds How Safe Are Corporates Corporate Bond Hierarchies Five Key Features Of Corporate Bonds How Are Corporates Taxed Treasuries vs Corporates, Etc. Who Might Want To Buy Corporates Wrap-Up >>>>>>>>>> Here is the overview for Bond Masters: 1. Stocks vs Bonds Historical Performance Are Bonds Really Less Volatile Why Invest In Bonds Accumulation vs Decumulation Allocation of Stocks vs Bonds Wrap-Up 2. Which Bonds Might Be Right For You Treasuries & Other Types of Bonds Nominal vs Real Yields Inflation vs Non-Inflation-Protected Taxable vs Tax-Advantaged Accounts Wrap-Up 3. Bond Ladders & Other Bond Strategies Normal vs Inverted Yield Curve What Is A Bond Ladder 5 Important Bond Laddering Questions Laddering When Rates Are Rising Laddering When Rates Are Falling Laddering When Rates Are Uncertain What Is A Bullet What Is A Barbell Wrap-Up 4. Holding to Maturity vs Selling Early Why Hold to Maturity When To Sell Early Before Maturity Tax Implications Of Selling Early Wrap-Up 5. Individual Bonds, Bond Funds, Etc. Why Buy Individual Bonds Why Buy Bond Funds Bond Fund Considerations Key Bond Fund Concepts CDs vs Treasuries Other High-Yield Investments Wrap-Up 6. Our B.E.S.T. Model Portfolios By Age Our B.E.S.T Model Portfolios By Age Model Portfolios In The Industry B.E.S.T Model Portfolio Difference How Much Do You Need To Retire? How I Use The Rules of 100, 110, & 120 B.E.S.T Model Portfolios (20s) B.E.S.T Model Portfolios (30s & 40s) B.E.S.T Model Portfolios (50s & 60s) B.E.S.T Model Portfolios (70s+) Wrap-Up 7. The Decumulation Phase What Is The Decumulation Phase? Bear Markets & Recessions What Can You Do In Bad/Bear Markets Decumulation Tax Considerations The 4% Rule The Bucket Strategy The Flooring Approach Jen’s Bucket Strategy With A Twist Wrap-Up >>>>>>>>>> SOURCES & FOLLOW-UP VIDEOS FOR TODAY'S VIDEO: www.bea.gov/news/2024/personal-income-and-outlays-may-2024 www.cnbc.com/bonds/ www.marketwatch.com/story/treasury-yields-a-touch-higher-as-traders-await-pce-inflation-data-4e711deb?mod=bond-report www.cnn.com/politics/live-news/cnn-debate-trump-biden-06-27-24/index.html www.treasurydirect.gov/auctions/upcoming/ home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics >>>>>>>>>> Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.
I just bought the 17 week T bill to keep my Treasury ladder on track. Financial "experts" spouting More blah blah about maybe rate cut Sept and one in Dec now saying Dec only. I say bull feathers! Listening to these goofballs (the same ones who said 4 to 6 rate cuts in '24 starting in march) instead of common sense is way better. i'll ride these rates till they drop i.e. under 4% (assuming inflation not reassuring) and then reassess where the market is. Better to take a sure thing in retirement then go all crazy. I have my growth stuff and value stuff and Reits all with good dividends in solid companies and ETF's. Nothing crazy. Good companies with a track record will weather any storm unless Armageddon takes out the world in which case it wont matter.
Excellent coverage! We have been following your videos for years now and your information is valuable. BTW, loved your professionalism in this video with focus primarily on financial topics and staying away from political comments. We rolled over our 6-month T-bills at 5.323% this week.
i have 4 week t-bills maturing on 7/2 and plan to roll them into the 7/3 auction. that has been my plan for awhile and will continue until the fed lowers rates (or the yield curve is no longer inverted).
Such great content! Im building my retirement portfolio..just curious if you guys ever discuss what role treasuries and bonds play in your overall portfolio (i assume we're not 100% bond portfolios) Thank you!
I prioritize these according to schedule of needs -- get interest payments and maturing short-term stuff (for rolling over or for cash) related to schedule of expected outgoes. Overall this fixed-income side of things is more like forced savings rather than risk assets such as stocks or gold or real estate. However there are some choices to take risks with bonds too depending on your own taste such as junk bonds and the long end of the curve. I do not agree with the "70% stocks 30% bonds" for a certain age group, that kind of formulaic approach (what lazy brokers spew forth) got many bond investors stuck with losses 2020-23. Investing needs to be more active than that IMO: the risks of each asset category should be revisited often (analysis) . I focus more on what I have exposure to, risk wise, upside appreciation-potential wise, inflation-hedges, etc. And I never get involved in black boxes and things I don't understand, such as commercial real estate/limited partnership deals some friends got in and they had to keep ponying up and now are looking to dump at big losses.
Everyone was talking about the Presidential debate on Friday, except for the New York Times. Their front page missed the story. Must not have been important to the NYT.
Just started rolling 4 week t-bills, so I plan to purchase this week. Also I've started to DCA the 20 yr bonds and this jump looks tempting to add to that position from the secondary market. Thanks for the content, Jen.
Nothing is absolutely risk free but treasuries are as close to risk free as you can get. As for as risk in t-bills, the risk is in rates, not getting your money back. My thought is to buy short term 1 month to 3 months as rates rise and flatten out, and go longer term 6 months to 1 year when rates are falling. If 30 year rates ever get to 18% as happened in the late 1970s, that's when I lock in 20 years or longer when rates start dropping.
Always learn something from your videos, thanks! Oh, and buying 3 Month Bill ETFs (TBIL). Some folk might not know these are sold by the US Treasury. During the day on Friday, BIL was up 0.02%, and then dropped 0.02% after hours.
Tax question: is it better to buy a 2-5 year treasury that pays 5% at face value, or one on the secondhand market for the same 2-5 years that only pays 1.25%, but only costs like $899 (but you get $1K back at maturity). Is the $101 profit from the used bond taxable?
Yes! It's a capital gain. Gains may be countered by capital losses. They are taxed at lower rates than ordinary income and interest. These bonds are best held in retirement accounts.
This difference is called accrued market discount. It is taxed like interest, not capital gain. You can get capital gain upon sale, if the sale price is more than the purchase price plus the rated market discount at time of sale.
What an intriguing question. Restoring checks and balances between the three branches (remember, although the agencies are creatures of Congress, the administrative state is part of the executive branch) should have seen equities go up and bond yields go down. Perhaps it didn't because the agencies will go hog wild rule making, putting every regulation they can dream up on the books between now and November, court challenges being expensive and rarely successful, even without Chevron. The more I think about, the more I think your question speaks directly to political risk. Yet another reason not to go all in any one auction. I'm sticking to my 4 mo bill ladder strategy, roughly equal amounts spread over 9 bills, bought on alternate weeks, with any uninvested cash earning 5.36% in my HYSA at Western Alliance Bank. Citing Coudert, "May you live in interesting times" is not a blessing.
@@PhilTomson That would be worth looking into. It would take a careful read of the Federal Reserve Act by a knowledgeable person to first, to assess whether the act is ambiguous, then to see if the agency has interpreted that ambiguity in rulemaking or policy. Then, a party injured by that interpretation, seeking a remedy a court could provide would have to bring a suit in federal court - and win. I doubt such a case could vitiate an agency. Likely it would only curtail the agency's authority, at least until Congress could be persuaded to establish that authority properly in new legislation. I'm not 100% certain, I am only speculating and I am not licensed to practice law or give any kind of legal advice.
Jen, an honest question here, instead of juggling around with short term bills, rolling, and always being on the lookout for new auctions, can we not put money in a money market fund that yields us 5.44% and leave it alone? Especially if one is not signing up for 10year or longer note.
In addition to the difference in state taxes, MM rates are not guaranteed for any length of time. If rates suddenly fall, MM rates will be immediately affected, but any treasuries you have will continue to be locked in at their fixed yield until maturity. That's probably not a significant factor for 4-week T-bills, but becomes more of one the longer your term is. The opposite could happen as well, if rates rise, then your MM yield should immediately increase, whereas your existing bonds will not.
There is always uncertainty and risk. This is why stocks return more than fixed income. Risk is the price you pay. So if markets hate it, fine, but it’s literally always there.
Obviously last 4 years been exciting. Lol. Not saying we drove off the cliff but it may not matter who is steering in the next few years until we get ss and deficit going on a positive path.
@@murraypassarieu9115 Trump CAN'T extend his tax cuts by himself. Congress has to write legislation to make Trump tax cuts permanent. Of course Trump will sign it.
💡Our July 4th sale is on! Get 10% off our bond courses while bond yields are high. Use coupon code summer2024 through midnight ET on Sunday, July 7th!
Join Bond Beginners today (our foundational-level bond course): www.diamondnestegg.com/bond-beginners
Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters
Or get both Bond Beginners & Bond Masters together for even more savings: www.diamondnestegg.com/#_paa2isucf
And join our super-supersaver membership for regular market updates & monthly live member Q&As th-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin
>>>>>>>>>>
WATCH NEXT
Our Bond Courses vs TH-cam Membership | Which Is Right For You: th-cam.com/video/H5h4Eyh0hjo/w-d-xo.html
Bond Beginners Course Sneak Peak | I-Bonds vs TIPS: th-cam.com/video/uXPzbje1g2E/w-d-xo.html
Bond Masters Course Sneak Peak | How To Build A Bond Ladder: th-cam.com/video/p90IDmXn19s/w-d-xo.html
>>>>>>>>>>
Here is the overview for Bond Beginners:
1. Bond Basics
What A Bond Is & How A Bond Works
Why Invest In Bonds
New Issue vs Secondary Market Bonds
Interest Rates & Bond Prices
Current Yield & Yield To Maturity
Always Remember This!
Buying At Par, Above Par & Below Par
Different Types Of Bonds
Wrap-Up
2. The Risks Of Bond Investing
Seven Key Bond Risks
Credit Risk
Interest Rate Risk
Reinvestment Risk/Call Risk
Inflation Risk
Liquidity Risk
Currency Risk & Country Risk
Bond Risk Mitigation Strategies
Wrap-Up
3. US Treasuries Overview
What Are US Treasuries
Why Invest In Treasuries
Where Can You Buy Treasuries
How Are Treasuries Taxed
Wrap-Up
4. Treasury Bills
What Are Treasury Bills (T-Bills)
When Do T-Bill Auctions Happen
Where Should You Buy At Auction
Auto-Roll When Buying At Auction
Where To Find Recent Auction Results
High Rate vs Investment Rate
Reopening Auctions
Cash Management Bills (CMBs)
Buying & Selling On Secondary Market
Wrap-Up
5. Treasury Notes & Bonds
What Are Treasury Notes & Bonds
When Do Auctions Happen
Buying Treasury Notes & Bonds
Auction High Yield vs Interest Rate
Floating Rate Notes (FRNs)
Treasury Zeros (STRIPS)
Wrap-Up
6. TIPS (Inflation-Protected)
What Are TIPS
When Do TIPS Auctions Happen
Nominal vs Real Yields
Negative Yields
How Do You Adjust TIPS For Inflation
Taxes On Phantom Income
Secondary Market Liquidity
Wrap-Up
7. I-Bonds (Inflation-Protected)
What Are I-Bonds
How Does I-Bond Interest Work
I-Bonds vs TIPS
The Annual I-Bond Limit
Wrap-Up
8. Agency Bonds
The Universe Of Bonds
What Are Agency Bonds
How Are Agency Bonds Taxed
Treasuries vs Agencies
Who Might Want To Consider Agencies
Yield-To-Call & Yield-To-Worst
Where Can You Buy Agency Bonds
Wrap-Up
9. Municipal Bonds
Our Bond Universe Gets More Complex
What Are Municipal Bonds
How Safe Are Munis
How Are Munis Taxed
The De Minimis Rule
Social Security & Medicare Premiums
Treasuries, Agencies & Munis
Who Might Want To Consider Munis
Wrap-Up
10. Corporate Bonds
Our Bond Universe Is Complete
What Are Corporate Bonds
How Safe Are Corporates
Corporate Bond Hierarchies
Five Key Features Of Corporate Bonds
How Are Corporates Taxed
Treasuries vs Corporates, Etc.
Who Might Want To Buy Corporates
Wrap-Up
>>>>>>>>>>
Here is the overview for Bond Masters:
1. Stocks vs Bonds
Historical Performance
Are Bonds Really Less Volatile
Why Invest In Bonds
Accumulation vs Decumulation
Allocation of Stocks vs Bonds
Wrap-Up
2. Which Bonds Might Be Right For You
Treasuries & Other Types of Bonds
Nominal vs Real Yields
Inflation vs Non-Inflation-Protected
Taxable vs Tax-Advantaged Accounts
Wrap-Up
3. Bond Ladders & Other Bond Strategies
Normal vs Inverted Yield Curve
What Is A Bond Ladder
5 Important Bond Laddering Questions
Laddering When Rates Are Rising
Laddering When Rates Are Falling
Laddering When Rates Are Uncertain
What Is A Bullet
What Is A Barbell
Wrap-Up
4. Holding to Maturity vs Selling Early
Why Hold to Maturity
When To Sell Early Before Maturity
Tax Implications Of Selling Early
Wrap-Up
5. Individual Bonds, Bond Funds, Etc.
Why Buy Individual Bonds
Why Buy Bond Funds
Bond Fund Considerations
Key Bond Fund Concepts
CDs vs Treasuries
Other High-Yield Investments
Wrap-Up
6. Our B.E.S.T. Model Portfolios By Age
Our B.E.S.T Model Portfolios By Age
Model Portfolios In The Industry
B.E.S.T Model Portfolio Difference
How Much Do You Need To Retire?
How I Use The Rules of 100, 110, & 120
B.E.S.T Model Portfolios (20s)
B.E.S.T Model Portfolios (30s & 40s)
B.E.S.T Model Portfolios (50s & 60s)
B.E.S.T Model Portfolios (70s+)
Wrap-Up
7. The Decumulation Phase
What Is The Decumulation Phase?
Bear Markets & Recessions
What Can You Do In Bad/Bear Markets
Decumulation Tax Considerations
The 4% Rule
The Bucket Strategy
The Flooring Approach
Jen’s Bucket Strategy With A Twist
Wrap-Up
>>>>>>>>>>
SOURCES & FOLLOW-UP VIDEOS FOR TODAY'S VIDEO:
www.bea.gov/news/2024/personal-income-and-outlays-may-2024
www.cnbc.com/bonds/
www.marketwatch.com/story/treasury-yields-a-touch-higher-as-traders-await-pce-inflation-data-4e711deb?mod=bond-report
www.cnn.com/politics/live-news/cnn-debate-trump-biden-06-27-24/index.html
www.treasurydirect.gov/auctions/upcoming/
home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics
>>>>>>>>>>
Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.
I think this was the first time I ever heard anyone say "This time it's different", and it really was! You made my day!
Buying! Had some mature Thursday so jumping back in Mondays auction. Getting these yields while they last. Thanks for the great content!
monday or tuesday!?
I buy literally every offering every week. Rolling windows across all maturities for the win.
I will be focusing on the 52 week and 26 week Tbill projected yield.
I just bought the 17 week T bill to keep my Treasury ladder on track. Financial "experts" spouting More blah blah about maybe rate cut Sept and one in Dec now saying Dec only. I say bull feathers! Listening to these goofballs (the same ones who said 4 to 6 rate cuts in '24 starting in march) instead of common sense is way better. i'll ride these rates till they drop i.e. under 4% (assuming inflation not reassuring) and then reassess where the market is. Better to take a sure thing in retirement then go all crazy. I have my growth stuff and value stuff and Reits all with good dividends in solid companies and ETF's. Nothing crazy. Good companies with a track record will weather any storm unless Armageddon takes out the world in which case it wont matter.
Excellent coverage! We have been following your videos for years now and your information is valuable.
BTW, loved your professionalism in this video with focus primarily on financial topics and staying away from political comments.
We rolled over our 6-month T-bills at 5.323% this week.
agreed
I’m buying this week.
13 week
1 year
2 year
Best analysis on TH-cam
Hear hear!
I also enjoy the bit about the morning exercises. I imagine a healthy happy household of super savers.
i have 4 week t-bills maturing on 7/2 and plan to roll them into the 7/3 auction. that has been my plan for awhile and will continue until the fed lowers rates (or the yield curve is no longer inverted).
Such great content!
Im building my retirement portfolio..just curious if you guys ever discuss what role treasuries and bonds play in your overall portfolio (i assume we're not 100% bond portfolios)
Thank you!
I prioritize these according to schedule of needs -- get interest payments and maturing short-term stuff (for rolling over or for cash) related to schedule of expected outgoes. Overall this fixed-income side of things is more like forced savings rather than risk assets such as stocks or gold or real estate. However there are some choices to take risks with bonds too depending on your own taste such as junk bonds and the long end of the curve. I do not agree with the "70% stocks 30% bonds" for a certain age group, that kind of formulaic approach (what lazy brokers spew forth) got many bond investors stuck with losses 2020-23. Investing needs to be more active than that IMO: the risks of each asset category should be revisited often (analysis) . I focus more on what I have exposure to, risk wise, upside appreciation-potential wise, inflation-hedges, etc. And I never get involved in black boxes and things I don't understand, such as commercial real estate/limited partnership deals some friends got in and they had to keep ponying up and now are looking to dump at big losses.
Everyone was talking about the Presidential debate on Friday, except for the New York Times. Their front page missed the story. Must not have been important to the NYT.
LOL
What debate? You mean there was a debate?
The Times is pushing the irresponsible "replace Biden" narrative.
The NYT ran a bunch of stories on the debate. I read them. Not sure how you missed them.
@@murraypassarieu9115 The day after the debate the NYT's front page did not contain a story about the debate. That is pretty shocking.
🎉this is the opportunity while the yields are juicy 😊
I actually purchased last week. I may do so again on Tuesday.
Just started rolling 4 week t-bills, so I plan to purchase this week. Also I've started to DCA the 20 yr bonds and this jump looks tempting to add to that position from the secondary market. Thanks for the content, Jen.
I'm buying 4- and 13week T-bills this week.
I'm rolling the laddered 4 week and 17 week bills this week.
Still rolling 4-week treasuries.
❤
I'm still buying and laddering.
if t bills are a risk all your money is a risk. if they are no good none of your money is any good.
Nothing is absolutely risk free but treasuries are as close to risk free as you can get. As for as risk in t-bills, the risk is in rates, not getting your money back. My thought is to buy short term 1 month to 3 months as rates rise and flatten out, and go longer term 6 months to 1 year when rates are falling. If 30 year rates ever get to 18% as happened in the late 1970s, that's when I lock in 20 years or longer when rates start dropping.
Always learn something from your videos, thanks! Oh, and buying 3 Month Bill ETFs (TBIL). Some folk might not know these are sold by the US Treasury. During the day on Friday, BIL was up 0.02%, and then dropped 0.02% after hours.
We will never get rich that way.
Everyone talking about the debate but no one mentioned the $1 to 161 yen.
Tax question: is it better to buy a 2-5 year treasury that pays 5% at face value, or one on the secondhand market for the same 2-5 years that only pays 1.25%, but only costs like $899 (but you get $1K back at maturity). Is the $101 profit from the used bond taxable?
Yes! It's a capital gain. Gains may be countered by capital losses. They are taxed at lower rates than ordinary income and interest. These bonds are best held in retirement accounts.
This difference is called accrued market discount. It is taxed like interest, not capital gain. You can get capital gain upon sale, if the sale price is more than the purchase price plus the rated market discount at time of sale.
Just found your channel and
will add more t bills this week. will continue rolling them as long as equity valuation is high
Hmm ... markets gave a collective shrug during the chaos of Jan 6th. Markets were up that day. I'm not sure the debate had much impact here.
go Joe keep the yields going up!
I am buying the 4 week bill this week and next week.
There is 6 days difference between auction date and issue date in some cases. Interesting.
Do you think this is a good time to go long on TLT?
Investors historically have been bad at judging inflation and should have demanded higher returns. That may ultimately be the case here.
Could this have had anything to do with the end of Chevron Deference?
What an intriguing question. Restoring checks and balances between the three branches (remember, although the agencies are creatures of Congress, the administrative state is part of the executive branch) should have seen equities go up and bond yields go down. Perhaps it didn't because the agencies will go hog wild rule making, putting every regulation they can dream up on the books between now and November, court challenges being expensive and rarely successful, even without Chevron. The more I think about, the more I think your question speaks directly to political risk. Yet another reason not to go all in any one auction. I'm sticking to my 4 mo bill ladder strategy, roughly equal amounts spread over 9 bills, bought on alternate weeks, with any uninvested cash earning 5.36% in my HYSA at Western Alliance Bank. Citing Coudert, "May you live in interesting times" is not a blessing.
Isn't there some worry that this ruling could threaten the existence of the Fed or at least limit certain functions of the Fed?
@@PhilTomson That would be worth looking into. It would take a careful read of the Federal Reserve Act by a knowledgeable person to first, to assess whether the act is ambiguous, then to see if the agency has interpreted that ambiguity in rulemaking or policy. Then, a party injured by that interpretation, seeking a remedy a court could provide would have to bring a suit in federal court - and win. I doubt such a case could vitiate an agency. Likely it would only curtail the agency's authority, at least until Congress could be persuaded to establish that authority properly in new legislation. I'm not 100% certain, I am only speculating and I am not licensed to practice law or give any kind of legal advice.
Agreed end of the quarter window dressing ran into political world fear.
Jen, an honest question here, instead of juggling around with short term bills, rolling, and always being on the lookout for new auctions, can we not put money in a money market fund that yields us 5.44% and leave it alone? Especially if one is not signing up for 10year or longer note.
What is the name of the MM fund and its location, please?
State income taxes are paid on money market interest but not Tbill interest
In addition to the difference in state taxes, MM rates are not guaranteed for any length of time. If rates suddenly fall, MM rates will be immediately affected, but any treasuries you have will continue to be locked in at their fixed yield until maturity. That's probably not a significant factor for 4-week T-bills, but becomes more of one the longer your term is. The opposite could happen as well, if rates rise, then your MM yield should immediately increase, whereas your existing bonds will not.
Tax free in California 😊
Thanks people. My state has no income tax and that’s why did not think of that. And yes I was referring to the short term juggling
There is always uncertainty and risk. This is why stocks return more than fixed income. Risk is the price you pay. So if markets hate it, fine, but it’s literally always there.
With 340 million Americans and this is our best.😢
People won't vote for the best. He might tell them they have to pay for their country. 😅
Could trump really default on our debt or recreate inflation and what as investors can we do about it?
Blood in the Streets scenario! Buy stocks!! 😅
Obviously last 4 years been exciting. Lol. Not saying we drove off the cliff but it may not matter who is steering in the next few years until we get ss and deficit going on a positive path.
He won’t default on it but he’ll extend all the tax cuts due to expire next year. That will increase the debt and could be inflationary.
@@murraypassarieu9115don't forget his 10% tariff on all imports - that would also juice inflation.
@@murraypassarieu9115 Trump CAN'T extend his tax cuts by himself. Congress has to write legislation to make Trump tax cuts permanent. Of course Trump will sign it.