150 years later - bupkus

Sep 17, 2020 | Jeremy Goldfarb


From the Investment Desk

What a cool chart from my partners at RBC GAM tracking yields on the 10 year US Treasury over the past 150 years!! Other than the spike in the 80's the ebb and flow in this figure was relatively range bound and moved in concert with economic activity.....until now. 

As bad as the 80's were for borrowers (and great for savers I guess!) today, the 10 year treasury is equally awful......but on the other end of the spectrum. Lend your bucks to Uncle Sam for 10 years and you can basically expect bupkus in return. A paltry interest rate measured in 2 digit basis points. 


Along the theme I wrote about on Friday's email, it really puts the role of government credit in your portfolio, into perspective. Where does it fit now, and what is it supposed to bring to the table? 


Think about it, and let me know.........