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U.S. Treasuries a Losing Proposition

Monday

(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.)

Sunday

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)

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