Over the last three years GNMA bonds have paid investors an average of 150 basis points over treasuries. That’s a terrific excess return for full faith and credit securities. In a market full of junk, it’s comforting to have the risk reduction characteristics of full faith and credit securities. And the volatility, compared to treasuries, has been more predictable. Hang with your Vanguard GNMA and if you have a five year window add to it. But don’t treat it like an alternative to cash because it’s not. It’s an investment.
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris.
Please get in touch with E.J. at ejsmith@youngresearch.com
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Please get in touch with E.J. at ejsmith@youngresearch.com
Click here to sign up for my free monthly Survive & Thrive letter.
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