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Q: 1. I haven't seen an answer to my question whether the instruction to go SHY can occur mid-month. (What does your model say about that?)

2. Why specifically SHY? Given that a future crash can be tied to a loss of confidence in the US dollar I am not sure how SHY would perform. What alternatives have you considered.


A: I've written on the subject before. If SHY becomes the best performing ETF, then we dump everything else. This could happen at any time.

Frankly, it doesn't help performance a great deal, but it's just in case the SH^$ hits the fan. We would then hold until the end of the month and then reassess.

U.S. t-bills and treasuries are considered "risk-free" investments. In other words, there is nothing safer than them at this time despite the BS about debt ceilings and default.

http://www.investopedia.com/terms/r/risk-freerate.asp

We use SHY because it gives at least a slight return. T-bills are often less than the inflation rate...like now.

There are no alternatives at this time other than BIL.

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