Leave a comment

U.S. Treasuries a Losing Proposition


(Update:  I had to laugh with Buffetts comments that came out today after I wrote this posting:  He said Treasuries were the worst investment and he likes stocks.)


If you own Treasuries or Treasury Bond Funds, sell em.  For two reasons:

–Treasuries don’t pay anything.  But you can earn good dividends by buying the dividend paying positions I have listed and described here.

–More importantly, interest rates will eventually go higher.  As the rates go higher, the bond values go Down.  In other words, you LOSE.  Rates may not go up for six months, next year, or even the year after.  But they will go up.  So Do Not Wait.

Own high dividend investments now….and get rid of the Treasuries.  As alternatives, look at corporate bonds and high yield bonds/funds.  Even floating rate bonds like PHD are good.  (Scroll down to see discussion on PHD)


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: