3 ms·

What would you do with 10k instead?

• nullc 5y ago
  Depends on your needs. In my case, I already own a significant amount of ibonds at the 0.5% (or higher) base rate and aren't in need of additional cash-like investments. We should expect the dollar denominated value of non-cash-heavy investments to have its returns increase by inflation. So if someone is looking at 9% ibonds and mentally comparing it 12% equities and thinking the ibonds sound amazing-- thats the wrong analysis. Instead they should back out inflation on both sides of that comparison and be comparing slightly negative yield ibonds to 10% equities yields. So essentially one should only own ibonds to the extent that one's portfolio needs something cashlike to improve its sharpe... and IMO one should try to load up on their ibonds when they're at a higher base rate. (How high? I dunno, but 0% is not high)
  • culopatin 5y ago
    Someone considering iBonds has 10k sitting idling and wants that to either hold most of its value, or gain value. They are willing to not touch it for at least a year and also don’t want to lose more money than what you lose with the iBonds. With a volatile market like the one today, what is a safer bet? iBonds, or gambling it at the market?