Comprehensive Analysis of Investment Potential for US Treasury Bills Versus Stocks
@George Anderson:
This market is confusing. Is there going to be a recession? What’s the interest rate trade? What can we assume about where the Fed’s discount rate is headed? Should we just take the 5% risk-free t-bill and get on with it? I think there are solid cases for both the t-bill trade and the long equities trade. Here I’ll make both. T-bills T-bills have become much more popular with investors in the last year. Even more everyday people are talking about getting the 5% risk-free return. That’s attractive. The t-bill trade isn’t what it was a few months ago, however. People were scooping up t-bills at 4+ % because they didn’t want to hold during a risky stock market. There were common fears that the Fed’s aggressive rate hikes would force a recession. That would pinch stocks. We are