Episode 2: Make Smart Investments, f.t. $ATIP $YELL and $ATLX
1. Your first $10,000 per year goes into iSeries US Savings Bonds. This pays inflation plus 0.4%, currently 6.7%
2. Your next “some money” goes into 13-week US Treasury Bills. They paid (a week ago) 5.128% on a bond equivalent investment rate, or 4.85% flat rate.
3. Put the rest of your long-term investments into a highly diversified US equity fund or ETF (I use Vanguard F500), but you can also use Fidelity, Schwab, or others, or $SPY ETF.
4. Pay off all your debt. 100% of it. This way all the flow of interest is into your pocket, and you understand your financial position. You don’t over-spend. You don’t make consumption decisions based on what you can borrow, but based on what you have.
5. The market is very, very risk off. The edge of our CQNS model is only 11 ticks over $SPY.
The price risk, or volatility, of individual stocks is much higher than the price risk of the diversified market of US equities. This is why we say risk-off, and suggest diversifying.
This is why we are dipping or stretching for returns into high-risk equity investments like $ATIP $YELL and $ATLX short.
Stock Market BLOG
President and Investment Advisor Representative