Bought shares of VPU @ 134.325 inside my retirement account today, bringing the cash in that account down from 100% to just 29%. I expect VPU to be a very, very long-term holding.
I would prefer to buy long-term TIPS instead at some point, but that party appears to be over. I’m reasonably convinced that this economy can never survive high real yields again with all this debt.
For more than a decade, I’ve believed that our ultimate destination would be nearly permanent ZIRP. Not seeing anything that would change my mind.
My next purchases will be more I-Bonds and EE-Bonds next month, outside of my retirement account. Not expecting much from 0% I-Bonds in a potentially low inflation environment. The EE-Bonds doubling in 20 years appeals to me much more (but lack safety if inflation does somehow accelerate).
The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. - Alan Greenspan (1966)
May we live in interesting times.
A friend pointed out that New Year's resolutions could be for evil too. I replied, "A true resolution for evil would be to resolve that each new year is worse than the last. I think we know there are people like that."
ReplyDeleteThe Terrible Twenties are upon us.
Who Struck John,
ReplyDeleteAt least we also have the Thirty Twenties to look forward to. Or as some might call it, $600 stimulus checks.
A thousand billion here, a thousand billion there, and pretty soon you're talking real money.