Should One Invest In Treasury Bills

Jul. 12, 2022 8:06 PM ETSPY, IVV, VOO, VTI, DIA, IWM, QQQ10 Comments
John M. Mason profile picture
John M. Mason
16.11K Followers

Summary

  • The stock market seems to be trending downward, bond prices seem to be falling, and the Federal Reserve seems to be tightening its monetary policy.
  • Treasury bills provide safety and protects the investor against movements in interest rates.
  • Among other assets, the feeling is that in the last three years or so, the Federal Reserve has created a "massive" misallocation of capital in financial markets.
  • All these are part of the picture that connects with slower economic growth as the Federal Reserve now fights inflation.
  • Investor caution seems to be warranted at this time.

Businessman Tied To Interest Rate Symbol By A Ball And Chain

DNY59/E+ via Getty Images

Bill Gross, former "bond king" has gotten back into the news recently with a modest picture of what might be in store for investors.

His conclusion: buy U.S. Treasury bills.

Buying one-year Treasury bills will

This article was written by

John M. Mason profile picture
16.11K Followers
John M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assistant to the secretary of the Department of Housing and Urban Development in Washington, D. C. and as a senior economist within the Federal Reserve System. He formerly was on the faculty of the Finance Department, Wharton School, the University of Pennsylvania and was a professor at Penn State University and taught in both the Management Division and the Engineering Division. Dr. Mason has served on the boards of venture capital funds and other private equity funds. He has worked with young entrepreneurs, especially within the urban environment, starting or running companies primarily connected with Information Technology.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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