Skip to main content
No. of Recommendations: 3
Treasuries, on the other hand,are where the big money goes (not just because of FDIC limits). Hedge funds and other big time day traders play the Treasury market, driving down yields when they want to buy. This is where the international money goes and the pension plans, insurance companies, etc. So "flight to safety" for the big players means Treasuries. Us small folks have the CD option, and for once being the little guy is an advantage.

What do you mean "for once"? The way I look at it, the little guy almost always has the advantage in the safe fixed income arena. The little guy can choose to buy CD's when they are advantageous, or treasuries when they are advantageous, or even savings bonds (I/E) when they happen to be advantageous. Not only that, but at auction, the big guys get exactly what they bid for a treasury (if they win the auction, obviously), while the little guy always gets the best bid.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.