[DaveZ]

A large portion of the US government's debt, approximately $9.2 trillion, will mature in the first half of 2025 with August being the key month and refinancing probably at a higher interest rate. Treasuries demand is low. Gold and other scarce assets are very high if not record high as investors eye uncertainty. BRICS countries are also snapping up metals like gold perhaps seeing sustained weakness in the dollar.

Sorry if redundant news but frames my question; what is your strategy?

(Serious and thoughtful replies if you don’t mind please.).

[retiredguy123]

40 percent stocks, 40 percent bonds, 20 percent cash. All in no load index mutual funds. If you are asking if I will buy gold, the answer is no. Never have, never will.

[DaveZ]

Originally Posted by retiredguy123

40 percent stocks, 40 percent bonds, 20 percent cash. All in no load index mutual funds. If you are asking if I will buy gold, the answer is no. Never have, never will.

Thank you retiredguy. Gold is risky. I’m not recommending anything, just listening for ideas. That and this forum is potentially interesting but very quiet.

[Stu from NYC]

Originally Posted by DaveZ

A large portion of the US government's debt, approximately $9.2 trillion, will mature in the first half of 2025 with August being the key month and refinancing probably at a higher interest rate. Treasuries demand is low. Gold and other scarce assets are very high if not record high as investors eye uncertainty. BRICS countries are also snapping up metals like gold perhaps seeing sustained weakness in the dollar.

Sorry if redundant news but frames my question; what is your strategy?

(Serious and thoughtful replies if you don’t mind please.).

Hopefully this will push or govt into bringing budget into balance even a surplus to being bringing down the debt.

[dewilson58]

Originally Posted by Stu from NYC

Hopefully this will push or govt into bringing budget into balance even a surplus to being bringing down the debt.

We can HOPE. More cuts, More reduction in government belly buttons, More reduction in fraud.

I assume (I kno, I kno), the upcoming refinance will incentivize the Fed to reduce rates going into the sales.

[dewilson58]

FYI.

Average interest rate on Federal Debt is ~3.6%

Which doesn't sound bad, but that is DOUBLE was it was five years ago.

Inflation during the last four years significantly impacted our debt costs.......as well as "eggs".

[manaboutown]

When talk started about European and other global markets looking like they might outperform US markets a few months ago I put my toe in the water and bought a little EUDG, IQDG and VYMI to see what would happen. They are up about 30%, 25% and 9% respectively from my purchase prices. With the Russia-Ukraine war going on at the Eastern side of Europe and many European countries starting to spend far more on their own defense forces as well as aid Ukraine I cannot see why some folks see the near future of the European economy as rosy yet big money is placing bets on it.

[kingofbeer]

Originally Posted by retiredguy123

40 percent stocks, 40 percent bonds, 20 percent cash. All in no load index mutual funds. If you are asking if I will buy gold, the answer is no. Never have, never will.

Ditch the mutual funds for low cost ETF'S.

[HappyTraveler]

Originally Posted by kingofbeer

Ditch the mutual funds for low cost ETF'S.

Pretty much the same thing. Six of one; half a dozen of the other.

[retiredguy123]

Originally Posted by kingofbeer

Ditch the mutual funds for low cost ETF'S.

Impossible to do with the built-in capital gains taxes. But, with Vanguard, there really isn't much difference between their Admiral Index mutual funds and their ETFs. The expense ratios are so small that the cost difference is negligible.

[dewilson58]

Originally Posted by dewilson58

We can HOPE. More cuts, More reduction in government belly buttons, More reduction in fraud.

I assume (I kno, I kno), the upcoming refinance will incentivize the Fed to reduce rates going into the sales.

Difficult to cut with cooling economy & inflation.

[Ecuadog]

Originally Posted by retiredguy123

Impossible to do with the built-in capital gains taxes. But, with Vanguard, there really isn't much difference between their Admiral Index mutual funds and their ETFs. The expense ratios are so small that the cost difference is negligible.

"Many Vanguard index funds are eligible to convert to ETFs as Vanguard has a unique share class structure that allows this process to occur without taxes if it is completed while you hold the securities at Vanguard."

Click here...

As always, check with Vanguard for the latest info.

[retiredguy123]

Originally Posted by Ecuadog

"Many Vanguard index funds are eligible to convert to ETFs as Vanguard has a unique share class structure that allows this process to occur without taxes if it is completed while you hold the securities at Vanguard."

Click here...

As always, check with Vanguard for the latest info.

Thanks, I didn't know that you can make the switch tax free.

I compared the Vanguard S&P 500 mutual fund with the ETF. The expense ratio for the fund is 0.04% as compared with 0.03% for the ETF, which would save $10 per year in fees per $100,000. The total return is 15.9 percent annually over 5 years for both the fund and the ETF. So, as I said, the difference is negligible. This may be different for other investment companies, but not for Vanguard. Personally, I don't care that you can trade ETFs hourly, but you can only trade fund shares daily. Some people seem to care about this.

[Normal]

Originally Posted by retiredguy123

40 percent stocks, 40 percent bonds, 20 percent cash. All in no load index mutual funds. If you are asking if I will buy gold, the answer is no. Never have, never will.

Amen… 1970 is long gone. Gold hasn’t nearly improved as well as stocks. We have about 20 % in cash and CDs of various banks. The stocks keep rolling it in.

Now we have a trade deal with China brilliantly crafted to our advantage. I say steady as she goes and enjoy your life.

[HappyTraveler]

Originally Posted by Normal

Amen… 1970 is long gone. Gold hasn’t nearly improved as well as stocks.

The gold market has been saying otherwise for many years and increasingly so in the last couple years. It seems the market doesn't like the fact that our national debt increases exponentially every year and the interest we pay on that massive mountain of debt is suffocating our national finances.

It all depends on your gold buy price, of course, and the probabilities for the future. A relative bought most of the gold he holds at $1150 p/ounce in 2014. It is now $3350 per. Which is slightly less than a 200% increase. So, he's sitting pretty and will avoid cap gains when he sells (or will pass it on to heirs). I believe it accounts for about 10% of his investment portfolio.

Speaking for myself, I'd be more skittish to buy at the current prices.