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Post by Deleted on Apr 20, 2022 16:22:43 GMT
I considering to put some of my cash in CMF (California Muni ETF) and VGSH (Vanguard short term treasury) / VCSH (Vanguard short term Corp bond) to get some interest while waiting to invest.
Risk is bonds may fall more. But I am hoping bonds should have priced in the rate hikes by now.
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Post by FD1000 on Apr 23, 2022 13:32:22 GMT
I considering to put some of my cash in CMF (California Muni ETF) and VGSH (Vanguard short term treasury) / VCSH (Vanguard short term Corp bond) to get some interest while waiting to invest. Risk is bonds may fall more. But I am hoping bonds should have priced in the rate hikes by now. I still don't see any stabilization or even a small uptrend. Attachments:
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Post by yogibearbull on Apr 23, 2022 13:49:55 GMT
Just but T-Bills until the funds and banks (online accounts, CDs) catch up. You can buy then at Treasury Direct or commission-free at major brokerages.
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Post by mozart522 on Apr 24, 2022 11:47:04 GMT
It would seem to me that if the FED raises rates to 3% on a fund with a 2 year duration, then the fund will be expected to fall about 6% from its high which I believe was last August. Some of that expected fall will be taken up by new issues at higher rates as they mature. Some will be taken up by a shorter duration as the yield rises. The total drop so far is -4.48% since last August.
My view is it will cost very little to wait until the end of July if the FED stays on track. It may be totally priced in or it may not. If one wants to do something with cash in the interim, do what Yogi says and buy T-bills at 13 weeks for a guaranteed return.
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Post by Deleted on Apr 24, 2022 17:40:16 GMT
Thanks. I will wait till few months more to see where feds and inflation go.
I was assuming markets are reasonably efficient and would have factored in the feds rate increases, runaway inflation and Ukraine war by now. But last few days action proves otherwise.
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Post by retiredat48 on Apr 25, 2022 6:45:37 GMT
I considering to put some of my cash in CMF (California Muni ETF) and VGSH (Vanguard short term treasury) / VCSH (Vanguard short term Corp bond) to get some interest while waiting to invest. Risk is bonds may fall more. But I am hoping bonds should have priced in the rate hikes by now. @waffle,...I think you are aware I have a thread going in the bond forum on 2 year treasury bonds as an investment; and that I recently purchased VGSH. Plan to buy more. R48 |
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