What makes more sense for an investment? Options A, B, or C?
Tie up your money for two years and make 1.526% in interest.
Tie up your money for ten years and make 1.476% in interest.
More investors are buying 10-yr US Treasury Notes than 2-yr US Treasury notes. At first glance, it doesn’t make sense. However, when you reflect on basic economics and think about supply and demand, you realize that investors must be buying more 10-yr US Treasury Notes than 2-yr notes which increases the purchase price and the inverse relationship causes the interest rates to go down. Basically, more investors are thinking that the 1.476% is going to be a better yield than what will be available two years from now. This is known as a treasury yield curve inversion. It’s a concern because it typically has been a reliable indicator of an upcoming recession.
I have no idea what the stock market’s going to do. However, if you’re near retirement (< 10 years) and the stock market has been on a great run for the last 10 years – maybe it’s time to move and protect YOUR money.
Personally, I prefer …
Moving a substantial portion of my earned and passive income through the Bankosaurus® and away from the stock market to protect my money and then grow it by leveraging some of the money into a 1-yr to 3-yr commitment (energy & real estate notes, syndicated real estate, …) that cash flows every month and pays 7% or greater in annual yield.
If you like to learn more about Option C, please don’t hesitate to call me. I love what I do! Elevating others and helping people make the next step.