Saying a different way, in your view US bonds are not currently priced correctly by the market for the factors you listed. This isn't something I tend to bet on myself for stocks or bonds.With labor shortages, de-globalization, shrink, problems related to climate change, the transition to green energy, political pressures on the FED, our ever larger national debt, geopolitical pressure for increased defense spending, and domestic pressure for increased social spending, yes, OP, I feel a lot more comfortable in cash than I would in BND.
For OP, I don't think I'd go all cash forever myself. And I'd not go all cash in the view that I'd somehow know when to go back into BND. If you are worried about inflation, replacing some of your BND with TIPS funds or I-bonds or a mix of those may be a good choice (this is what I have), as long as you don't expect it to be magic. TIPs did better than nominals in the recent inflation, but still fell. I think intermediate treasuries are often given as a reasonable alternative to BND.
Statistics: Posted by Da5id — Sun Apr 14, 2024 3:45 pm — Replies 18 — Views 1087
