Vanguard money market changes (Aug 2020)

Discussion of the Cash portion of the Permanent Portfolio

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jhogue
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Re: Vanguard money market changes (Aug 2020)

Post by jhogue »

At the moment, I am about 50-50 in FDLXX and I-bonds for Cash. FDLXX yields close to zero; I am holding it for safety and liquidity, not yield. I-bonds are presently yielding 1.06%- better than the 10-year bellwether Treasury note. My present mix has become my "barbell within a barbell."

Normally, I would have some 1 year T-bills too, but we are not in normal times, thanks to the Fed's ZIRP. Fortunately, I have yet to have to redeem an I-bond in order to rebalance into Cash.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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