Time To Consider Short-Term Treasurys? Yields Have Hit An 8-Year High

Summary

  • A 26-week Treasury just auctioned with an investment yield of 1.036%.
  • 13-week yields are closing in on the 1% mark and may outperform your cash holdings.
  • These short-term Treasurys can be purchased without commissions or fees and are ultra-safe and ultra-liquid.

Read my full analysis at SeekingAlpha.com

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Inflation Analysis: Why Spaghetti With Chicken Livers Is A Bargain In 2017

Summary

  • A Charlotte restaurant offers a unique look at inflation over 54 years.
  • Think gas prices were cheap in 1963? They still are.
  • The stock market has been the best hedge against inflation since 1963. Is that a positive thing? Or an omen?

Anyone who drove a car before the 1973 gas crisis fondly remembers gasoline at 25 cents a gallon. That’s what it was selling for back in 1963. Those were the days! But in reality, gas prices are almost as cheap today as they were in 1963.

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Breaking News: U.S. Treasury Holds I Bond’s Fixed Rate At 0.0%

Summary

  • I Bonds purchased from May to October 2017 will earn a composite rate of 1.96% for six months.
  • If you haven’t bought I Bonds in 2017, I suggest waiting until October.
  • Terms for EE Bonds didn’t change – their value still doubles after 20 years, making them a very competitive investment for the right buyer.

Read my full analysis at SeekingAlpha.com

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Going Negative: 5-Year TIPS Auctions With A Real Yield Of -0.049%

Summary

  • Returns for this new TIPS will slightly lag inflation over the next five years.
  • The negative yield is an omen that the markets see a troubled economy ahead.
  • The inflation breakeven rate came in at 1.82%, a little higher than recent numbers.

Yes, that is a negative number, and it means that returns for investors in CUSIP 912828X39 will slightly lag inflation over the next five years.

Read my full analysis at SeekingAlpha.com

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I Bond Dilemma: Buy Now, Buy Later, Or Split The Decision?

Summary

  • Buy before May 1 and get a higher variable rate; buy after May 1 and possibly get a higher fixed rate.
  • Waiting will cost you short term, and it might take about 4 years to break even.
  • But I Bond investors are always eager to get a higher fixed rate. Should you divide your purchases this year?

Investors in US Series I Savings Bonds are in an interesting ‘limbo’ period right now, leading up to the May 1 reset of the I Bond’s variable and fixed rates.

Read my full analysis on SeekingAlpha.com

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