For eight long years, conservative investors, retired investors, and income investors have suffered through a nightmare environment. Risk-free income in the form of full-faith-and-credit U.S. Treasury bills has been held off the market by a Federal Reserve more interested in serving the interests of Goldman Sachs than America’s savers.
As our chart shows, that nightmare appears to be ending. There is still a long ways to go to get back to normal, but an investment in 6 month T-bills will yield you more than a full percentage point in income today.
It will only take you about 72 years to double your money as opposed to the 700 plus years when rates were a mere 10bps.
Jeremy Jones, CFA
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