My economics teacher: Buy treasury bonds!

[smhbbag]

Why do TBTB want these stars aligned as you say?

Why does it matter to me, as an investor, why they want them aligned? If they're aligned, I can make money. I have, and I will.

[Dforkus]

at 2% points of yield I don't see it, or course I don't understand the gold cheerleaders either, I wouldn't exceed a 10 to 20% allocation in gold at this point either.

You can take that 2%, or you could invest solid but boring companies, like Conoco Phillips, Exxon Mobil, Wal Mart, Kraft Foods, McDonalds, Coca Cola, Phillip Morris International, Energy transfer partners.. These all pay more than 2% points in dividend (some more than double), so you are ahead even if they don't appreciate in price, which is unlikely, giving their position's in their respective industries. Even tech stocks like Apple and Intel are paying dividends these days.

[Dforkus]

All I'm betting is that what has already happened will happen again. The same factors that made me get 30% last year are all still in place and still true.

You guys talking about me getting less than inflation or whatever just don't get it. The coupon I receive doesn't even really merit being part of my calculation. Big money has to go somewhere, and there is big, big money out there. When they lose confidence in foreign debt and domestic stocks, they don't have many options, even if they don't even want the treasuries. They'll still run to them. And when they do, I make money.

Yesterday a perfect example. The DOW was down by 200 points on a bad jobs report and some European problems. My treasury fund went up almost 2% yesterday alone. Exactly what happened yesterday will continue to happen.

Yesterday was a perfect example of one day, as today bears out... Look, if you bet big on treasuries in the last couple years, congrats, it absolutely was a good call (although not as good as certain equities, like oh, for instance AAPL or PM, which have throughly curb stomped treasuries.)

But, remember that famous disclaimer, "Past performance is no guarantee of future results". When you are talking about 10 year yields below 2%, sorry you are just about out of blood to squeeze from that turnip, common sense and math show that trend is not going to continue. If uncle sam is only going to offer up a measely 1.75% on my money, I'd rather invest that money with people who put 5 cents worth of sugar water in a 20oz bottle and sell it for a 1.50 (KO, PEP) or sell cigarettes (PM), or gasoline (XOM, COP), or fried chicken to the chinese (YUM) or folks who are literally making so much money they can't figure out what to do with it all (AAPL), all of which pay me just as much money as uncle sam, and let me own part of a sucessful buisness.

[heavenlyboy34]

^Finally, one guy actually gets it. Normally, they're highly speculative. I stay in cash or cash equivalents until/unless I know of something I consider nearly a sure thing. I've never lost money in the market, even though I've only been investing for a decade or so. I go all in on that one thing when it does arise. Last year, the stars aligned to my satisfaction on treasuries and I jumped in.

The stars are still aligned. There is no possible way any of the factors that would hurt treasuries will come true. Interest rates aren't going anywhere. Foreign debt is screwed far worse than we are. The stock market is going down. If those are true, and they are, then treasuries are virtually no risk. High inflation cannot happen because of all the debt that is still unwinding. I don't really feel any risk.

Okay, a reasoned opinion-but couldn't you get a better return on PM's or real estate and with less risk?

[smhbbag]

Okay, a reasoned opinion-but couldn't you get a better return on PM's or real estate and with less risk?

The whole reason I'm in treasuries is that I think there are way more deflationary pressures out there than inflationary. I'm bearish on both gold and real estate. I don't know a lot about pm's, but as a group I'm bearish on them all, apart from some expanding industrial/technological use for a particular metal.

[Austrian Econ Disciple]

Economics aside, I sure as hell don't want them to have my property and money through taxation, so I surely would never voluntarily fund that damnable institution. The guys who 'invest' in treasury's (aka the State) and facilitate (or at least help to) the current quagmire are pathetic. Ye love wealth more than ye love liberty. You are not my countryman as Sam Adams would say..

[legion]

Economics aside, I sure as hell don't want them to have my property and money through taxation, so I surely would never voluntarily fund that damnable institution. The guys who 'invest' in treasury's (aka the State) and facilitate (or at least help to) the current quagmire are pathetic. Ye love wealth more than ye love liberty. You are not my countryman as Sam Adams would say..

I think the social argument is the reason most people here don't like treasury bonds. You don't like treasury bonds because of some social belief, not because it's a bad investment.

Investing to make a point about social justice is a poor strategy.

I think if you looked into it there is much more coercion that goes into mining an ounce of gold than an equal amount of growing government, which the people are demanding grow.

[Bern]

Janet Yellen hinting that ZIRP may be extended through 2015:

http://www.zerohedge.com/news/bernan...ough-late-2015

[matt0611]

I think the social argument is the reason most people here don't like treasury bonds. You don't like treasury bonds because of some social belief, not because it's a bad investment.

Investing to make a point about social justice is a poor strategy.

I think if you looked into it there is much more coercion that goes into mining an ounce of gold than an equal amount of growing government, which the people are demanding grow.

I don't like treasuries because they are bad investments, can you make money on them? Yeah, sure, obviously. You can make money speculating on things if you know what you're doing. I much rather hold something else in the long term though.

[The Gold Standard]

Treasuries can be a good trade if you buy them at the right time and sell them while people still want them. They are a terrible long term investment, especially right now.