they're great - what's not to like? The lockup is a problem and the limits on how much you can invest reduce their usefulness, but hey risk free bonds that keep up with inflation? All good.
Of course they are exciting now at these high interest rates but we'll care a lot less when they pay 2-3%. Although that will still be better than savings accounts so it's fine.
I've been stashing money in them every month. Plan is to make them my emergency fund.
There are simple workaround regarding the annual limits as I have posted here before (read: gifting).
The 9.6% rate is in effect for the next 6 months, true, but if you buy now, you will be getting something in the mid 6% range. The rate changed for anyone purchasing after last Friday night. The rate is still good,, just not the 9.6% good, except for existing holders.
The lock-up is 12 months only, and after that there is just a slight interest penalty of loss of interest for the previous 3 months of interest earned prior to the cash-in date if the bond is held for less than 5 years.
interesting pro and con discussion of iBonds in this piece. I'm not vouching for the piece but it does give some reasons to look at other products.
Seven of eight indexes on our world watch list posted losses through October 31, 2022. The top performer is India's BSE SENSEX with a YTD gain of 4.28%. London's FTSE 100 is in second with a loss of 3.93% and Tokyo's Nikkei 225 is in third with a loss of 4.18%. Coming in last is Hong Kong's Hang Seng with a loss of 37.23% YTD.
Seven of eight indexes on our world watch list posted losses through October 31, 2022. The top performer is India's BSE SENSEX with a YTD gain of 4.28%. London's FTSE 100 is in second with a loss of 3.93% and Tokyo's Nikkei 225 is in third with a loss of 4.18%. Coming in last is Hong Kong's Hang Seng with a loss of 37.23% YTD.
Not only did the Dow have its best month since 1976 but it just had its best October EVER. Not only that but when the Dow has a really good October there is a high likelihood that it will do really well over the next 3-, 6- and 12-month periods.
There is 0 correlation between a monthly price return and the following 12 month price return.
I would usually agree with you, but since WWII, when the Dow has done 10%-plus in October, 82% of the succeeding 3-month returns have been positive, 82% of the succeeding 6-month returns have been positive and 72% of the succeeding 12-month returns have been positive. Coincidence?
I am going with consensus view, 0.75 now and Dec: 0.5
But the language about the upcoming ones is what is going to be so carefully scrutinized, and I suspect he may not show his hand, being very guarded and not wishing to limit their options going forward.
There is 0 correlation between a monthly price return and the following 12 month price return.
I would usually agree with you, but since WWII, when the Dow has done 10%-plus in October, 82% of the succeeding 3-month returns have been positive, 82% of the succeeding 6-month returns have been positive and 72% of the succeeding 12-month returns have been positive. Coincidence?
Yes. Also, you misread the article. Since WW II the DJIA has been up 70.99% 12 months later ( End of the month prices ) whether the month was + or -.
You said inflation would be droppping about a year ago. Biden said it (high inflation) was transitory a year and a half ago, Joe Biden signed into law the Inflation "Reduction" Act 3 months ago. What happened?!? It was at 1.75% when Trump was president. Why is inflation still at 8.2%