T bills yielding 5%

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[Post New]02/18/2023 11:12
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Anonymous
We haven’t seen this kind of risk free yield in many decades. Currently, the avg. s and p 500 dividend yield is a paltry 1.65%. The point being here is that there is now a very viable alternative to equities for savers to park their money in. Equity risk premium compared to the bull run from 2009-2021 no longer exists like it did before. How long will this suppress returns on the stock market is the question. Anyone else thinking about rebalancing assets for these kinds of juicy risk free gains?
[Post New]02/18/2023 15:45
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Anonymous
Of course. I am now completely out of stocks for now because of this. Unfortunately, the yield on T-bills is high, but inflation is higher.
[Post New]02/18/2023 15:50
quote
Anonymous
Anonymous wrote:Of course. I am now completely out of stocks for now because of this. Unfortunately, the yield on T-bills is high, but inflation is higher.


How old are you? You shouldn't be "completely out of stocks" unless you're really old or on a fixed income.
[Post New]02/18/2023 16:00
quote
Anonymous
Anonymous wrote:
Anonymous wrote:Of course. I am now completely out of stocks for now because of this. Unfortunately, the yield on T-bills is high, but inflation is higher.


How old are you? You shouldn't be "completely out of stocks" unless you're really old or on a fixed income.


41. I’m not permanently out, but I am for now, until things make more sense to me. I actually got out of the market completely early in 2021 when the S&P was 4000. I missed the big run-up to 4800 and the crash down to 3600. We’re now back above 4000, but I still think there’s more to drop. I don’t think I’m going to be able to time it perfectly, but for now I’m happy just hanging out in T-bills and I bonds.
[Post New]02/18/2023 16:20
quote
Anonymous
Anonymous wrote:Of course. I am now completely out of stocks for now because of this. Unfortunately, the yield on T-bills is high, but inflation is higher.


Yeah, but T bill yields are risk free..inflation on top of negative stock performance is worse.
[Post New]02/18/2023 16:32
quote
Anonymous
Anonymous wrote:
Anonymous wrote:Of course. I am now completely out of stocks for now because of this. Unfortunately, the yield on T-bills is high, but inflation is higher.


Yeah, but T bill yields are risk free..inflation on top of negative stock performance is worse.


It's fine to put new money into T-bills. Just don't stocks if you don't have to.
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