- The last time I bought plain vanilla Treasuries was in 2000 as the stock market was about to crash; with short Treasuries offering around 3% I recently bought short Treasuries.
- My recommendation is a ladder with five steps from 6 months to 2 years adjusted for your goals; longer maturities don't offer significantly higher yields.
- A good low cost alternative is the Vanguard Short-Term Treasury ETF which basically creates the ladder for you, has low cost of .04% and a 2.5% yield.
- My suggestion is using 50% of your cash at this time; the direction rates may take is binary, up if the Fed keeps fighting inflation, down if it is forced to fight a recession.
- Laddered Treasuries offer great flexibility, and with a 50% commitment you are positioned to increase or extend your ladder if the probability of recession increases.
For further details see:
Buy Short Treasuries: Use A Ladder And Keep Some Cash In Reserve