Are your investments characterized by the flash and speed of a supercar, or the reliability and protection of a Brinks truck?
There’s nothing wrong with a super powered automobile made to take on curves at maximum speed, but the power that makes those machines exciting, is also what breaks their parts. All that torque can be hard on an automobile.
Meanwhile, the massive diesel engines and reinforced steel protective bodies of armored trucks make sure its cargo reaches the destination.
Back in 1990 I called Treasuries “the armored Brinks truck of financial markets.” I was responding to a subscriber’s comment, here:
Subscriber Joan Howell recently contributed a nifty note on the wisdom of Treasuries. Joan writes, “I began to see a similarity in the selling of mutual funds, stocks and automobiles—a constant turnover of whatever is the fanciest, flashiest, or sexiest mode. Not that the ones at the top of the list are that bad, they just never stay permanently at number one. Then I thought of Treasuries as an armored Brinks truck: gray, square, solid, authoritative, weighing tons; no need to be ‘in fashion’ but always there, reliable, very profitable.”
Joan’s illustration is a beauty and adroitly defines the comfort level that Treasuries provide.
My family owned advisory firm, purchases treasuries for clients as a component of a balanced portfolio. If you are a retired or soon to be retired investor with $500,000 or more to invest looking to ease the burden of portfolio management to spend more time with your family and would like to discuss our treasury strategy during a free, no-obligation portfolio review with a seasoned member of our investment team, please fill out the form below.
Originally posted on Young’s World Money Forecast.