Not a good time to buy US T-Bond... Real problem is debt spiral of US Gov
As an investor, I wouldn't buy a US T-Bond in this period. Fed didn't increase interest rates. But it doesn't mean that they would decline it shortly. In my interpretation, the Fed will stay "High for a longer interest rate" over a long period of time. The real problem is coming from the debt spiral of US Gov. As you know, there are two wars going on in the same period. The debt of the US Gov has skyrocketed. They will print out more Bonds in the near future. You as investors should not be relieved that the Fed kept a degree of interest rates. There are three variables to change the landscape of economics and investments. One is US government debt, Second is the instability on price of oil from the war in the Middle East will be extremely volatile. Third is the overpressured supply in the US bond market from the Government.
I raised the percentage of ETF related to Bitcoin and the crypto market
I recently rebalanced my portfolio to make it a crypto market-focused portfolio. As more and increasing debt spiral of the US Government, the yield of bonds will increase and the price of bonds will decline. War isn't even over and it just starts. The US will print more bonds to support those wars to sustain their supremacy in the world. And also next year, the US has an election. Biden and Trump will be against each other to win the presidential election. Who knows? There might be the third new runner will be on the stage of the election. Russia and China would support Trump and want to make their negotiation partner in the US. With the instability of geo-political status, I think Bitcoin will be the final winner. This is the reason I invest more in crypto-related stocks and currency in the market and rebalance to focus on crypto-related ETFs.
Bitcoin will be the safest asset in the world
When geo-political conflicts happen in the world, Bitcoin will be the winner in the asset market. It is not a timing to buy the US T-Bond. The instability of the US bonds will incline. It will be like pouring water into a pot that has a big hole. This means T-Bond currently is not working as storing asset value in the safest manner. If you meet the maturity of bonds, you will get your original seed money on bonds and annual return by yield. But It wouldn't be a good investment choice in the long term period. With bitcoin that has a ceiling capped, Bitcoin has the full capability to store your asset value without printing more monetary coins. It will even decrease the total supply that flows into the Bitcoin market. And then the value of Bitcoin will increase. This is the reason why I rebalanced my portfolio to more focus on crypto-related asset vehicles.
Once the yield of bonds is increased...discount rate for Stocks will be also increased
This means that Big Tech stocks will get the pressure to be declined in the market. I still see that Magnificent 7 in the US market is a promising stock that you can invest in. Other small-growth stocks will have a hard time on surviving in the era of stagflation. I still see Google, Tesla, Apple, and Nvidia are good choices to invest in. These are the only companies that have full of cash in their company balance sheet and have full capability to generate cash even though we are in the era of stagflation due to the growth of generative AI in the near future. In my portfolio, I only own crypt related to stock, ETF, and currency coins, and Tesla and Nvidia. As I mentioned earlier, It is not a timing to buy a US-Bond. It is the timing to buy Bitcoin and US Big Tech companies like Google, Tesla, Apple Nvidia and more