The increased pace of U.S. interest rate hikes has elevated the yield-generation potential and expectations for most interest-bearing investments. For risk-averse investors or individuals focused on saving – now is truly an opportune time to consider investing in U.S. Treasury Bonds. U.S. Treasuries: A look through time Presently, 6-month and 1-Year U.S. Treasuries are yielding approximately 5%, an occurrence that was last observed from 2006 to 2007. Furthermore, the yield of U.S. Treasuries is currently outpacing that of the S&P 500 Dividend Yield, truly highlighting the magnitude of return generation that is occurring now. U.S. Treasuries: A look through time The opportunity cost of doing nothing Because of the low-risk nature of U.S. Treasuries, one of the fairer instrument types to contrast them against is term deposits, such as a certificate of deposit. As observed from the following chart, the rate of return for a 1-year U.S. Treasury Bond is much greater than the yield guaranteed for a 1-year certificate of deposit and far more than anything one may receive from a U.S. savings account. The opportunity cost of doing nothing While it is also fair to acknowledge that treasury rates may change greatly over time, depending on the […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
