Trading Update

Bought all the tax-deferred savings bonds for the year that the government would allow. Didn't see any reason to wait.

1. 0.1% EE Savings Bonds.

Clearly not buying these for the 0.1% interest rate. If and only if they are held 20 years, then they are guaranteed to double though. That works out to 3.53% per year. That's much higher than the 1.6% yield on the 20-year Treasury bond.

2. 0.0% I Savings Bonds.

Clearly not buying these for the 0.0% interest rate. They do appreciate based on the consumer price index though. The 0.0% fixed rate is higher than the -0.29% fixed rate on the 30-year inflation protected Treasury bond (TIPS).

This has nothing to do with today's stock market action, or even the pandemic. I've been buying savings bonds off and on since 2000, and as long as they offer good relative safety and value then I will no doubt continue to do so.

For those curious about my long-term purchase of VPU (and/or enjoy watching paint dry or water boil), I intend to post a chart on (or shortly after) the last trading day of each month. That will allow you to laugh at my risk taking folly and/or watch it slowly grow with me well into the distant future. :)