Thursday 17 October 2024

Lower inflation and rate cuts

The rate cuts are happening, but more importantly, weaker inflation has been reported in the Eurozone and the UK. I have started to deploy my excess U$ into iShares 0-1 Treasury  Bond ETF (IBTU) since there doesn't seem to be anywhere else to park the cash.  US$ stock prices are scary with new all time highs being reached every day it seems.

Short term US Treasuries seem safer than US equities at the moment and the current yield is reasonable with the website reporting YTM to be 4.6%. Furthermore, any price changes are likely to be to the upside rather than the downside.

However, as I have said in the past, I should not underestimate the US market, so I will continue regular DCA of VWRD / VUSD and other ETFs, but like many others, I wonder when is the next (inevitable) correction?

Finally, I'm more in holiday mode at the moment with a couple of short trips lined up, so I don't plan to do any day trading for the rest of the year, unless something exciting happens...




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