Educate me on 30 year treasuries in a high inflation market. via /r/wallstreetbets #stocks #wallstreetbets #investing


Educate me on 30 year treasuries in a high inflation market.

I understand that buying bonds and then having inflation hit is bad. However, what if you are buying treasuries at peak inflation, or near it? I get that if you buy 10% yields and inflation goes to 15%, you lose, but what if your goal is a locked in 10% ROI because you plan to live in another country on say, 40k per year (I recently bought a vacation home abroad where the monthly average income is $600/month, so the 40k annual would be sublime. My cost of living in the US is roughly $2.5k/month so basically I could retire on that coupon payment here as well), thus investing 400k to lock in that return. Am I a fool or is this basically how a 30 year treasury would work if I only care about the coupon payment and the return of my initial investment, and don’t care about bond value fluctuations until maturity? Asking now to get my cash ready for that stagflation/hyperinflation.

Submitted March 27, 2022 at 04:16AM by FullSnackDeveloper87
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