Treasuries at current yields is almostidentical to that of writing naked index puts 25% out of the money.*...Adding a little "cheer" to the season?????? ;-)Well, it's a cheery observation if you're among those smart enough not to own Treasuries!Note, I actually expect yields to stay quite low, and often lower than this,for most of the next several years as deflationary pressures remain dominant.But I would never bet money on that. The upside is nonexistent, andthe risk of a bond panic is ever-present.If you want to park money in something cash-like, use cash.Nothing besides cash (including very short dated notes) is like cash.Don't reach for yield in fixed income, live with the zero on offer for now.Nothing worse than an asset that's "good until reached for".And it bears repeating, "More money has been lost reaching for yield than ad the point of a gun." (Raymond DeVoe, Jr.)Almost nothing but equities and cash make sense these days, and I'd hold my cash in a variety of credible currencies.The number of bonds and preferreds that have yields commensurate with their risk is pretty low.Jim
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra