7-10 Year Treasury Bond Fund ETF as a proxy for Cash
Posted: Wed Dec 31, 2014 6:05 pm
For the cash portion of my Permanent Portfolio, I'm using IEF: iShares Barclays 7-10 Year Treasury Bond Fund ETF. Is that a good proxy for Cash?
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7-10 Year Treasury Bond Fund ETF as a proxy for Cash
https://www.gyroscopicinvesting.com/forum/viewtopic.php?t=6642
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Re: 7-10 Year Treasury Bond Fund ETF as a proxy for Cash
Posted: Wed Dec 31, 2014 6:21 pm
Nah. Cash isn't where you want your volatility. Stick to SHV, SHY, or treasuries. The more you increase the duration on the bonds you use for cash, the more the cash quadrant of your portfolio resembles the bond portion, which can decline sharply during periods of inflation or rising interest rates.
Re: 7-10 Year Treasury Bond Fund ETF as a proxy for Cash
Posted: Thu Jan 01, 2015 12:52 pm
No. Cash is for safety. That's not safe and there is way too much potential volatility there. It could skew the returns on your PP.
Re: 7-10 Year Treasury Bond Fund ETF as a proxy for Cash
Posted: Thu Jan 01, 2015 1:58 pm
Alright, gents, you've convinced me. I'm going with SHY: iShares Barclays 1-3 Year Treasury Bond Fund ETFrobtkatz wrote: For the cash portion of my Permanent Portfolio, I'm using IEF: iShares Barclays 7-10 Year Treasury Bond Fund ETF. Is that a good proxy for Cash?
Pointedstick wrote: Nah. Cash isn't where you want your volatility. Stick to SHV, SHY, or treasuries. The more you increase the duration on the bonds you use for cash, the more the cash quadrant of your portfolio resembles the bond portion, which can decline sharply during periods of inflation or rising interest rates.Ad Orientem wrote: No. Cash is for safety. That's not safe and there is way too much potential volatility there. It could skew the returns on your PP.
Re: 7-10 Year Treasury Bond Fund ETF as a proxy for Cash
Posted: Thu Jan 01, 2015 2:03 pm
Re: 7-10 Year Treasury Bond Fund ETF as a proxy for Cash
Posted: Thu Jan 01, 2015 9:03 pm
Boy, that was easy.
Cf numerous previous threads about "improving" on the 25% cash allocation that everyone loves to hate :-)
Here's my favorite old thread on that subject: http://gyroscopicinvesting.com/forum/pe ... -pp-asset/
Cf numerous previous threads about "improving" on the 25% cash allocation that everyone loves to hate :-)
Here's my favorite old thread on that subject: http://gyroscopicinvesting.com/forum/pe ... -pp-asset/
Re: 7-10 Year Treasury Bond Fund ETF as a proxy for Cash
Posted: Fri Jan 02, 2015 12:59 pm
TennPaGa wrote: If cash is the asset that everyone loves to hate, I'd say bonds is the asset that everyone hates to love.
That deserves a place in your signature line!!