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Strategies & Market Trends : Value Investing
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Eric Bramble
To: Eric Bramble who wrote (72511)3/10/2023 1:55:45 AM
From: Grommit1 Recommendation  Read Replies (1) of 78953
 
Treasuries. Sorry, I do not understand your question. Click on results:
xxxx CLICK xxxx

also:
>>> At the bank account 4%. Still want liquidity and hoping for market crash. So not buying treasury or CD with higher rate.

Treasuries are vey liquid. and If you stay short term, there won't be much of a (or any) discount with a pre maturity sale. The secondary mkt is fair. I've bought some on the secondary, but most at auction. The only downside to a TBill sale before maturity is that it is a ST fully taxable gain, but if you hold to maturity it is interest income that is exempt from state tax. Both are ord income, but a state tax hit for an early sale.

A 5.1% state tax exempt treasury treasury is 5.1% / (1- 0.093) = 5.6% for me in CA.
quite a bit better than a 4% bank rate.

An additional benefit to treasuries for me, is that investing in them keeps me from buying stuff now. If prices really melt I can cash them in or wait a few weeks for some to mature. I have a mix of 13-26-52 week bills. And small amount of 2 yr notes that I bought on secondary with 90 weeks remaining -- they are 4.5% coupon bought at a discount for 4.7% yield. (maybe that answers this: >> did the premium to par affect you decision making much ?)

good luck
grommit
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