21 August, 2020

Quora Answer: Are US Government Treasury Notes & Bonds a Good Investment in 2019?

The following is my answer to a Quora question: “Are US Government Treasury notes & bonds a good investment in 2019?

That really depends.  They are extremely safe, and low risk. In that sense, they are very good.  The US is not going to collapse, or fall into default anytime soon.  The US Dollar is the reserve currency in the world.  But by themselves, they are a terrible investment since the yield is so low that it is well below the rate of inflation.  Thus, a portfolio consisting exclusively of US T-bills will be worth a lot less upon maturity.



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