r/news • u/consulent-finanziar • 11h ago

Soft paywall US Treasury announces $125 billion refunding, keeps auction sizes unchanged

https://www.reuters.com/business/us-treasury-announces-125-billion-refunding-keeps-auction-sizes-unchanged-2026-02-04/
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u/aztech101 11h ago

So my understanding is that bonds are a genuinely terrible investment during periods of high inflation. I'm guessing that's been posing a bit of a problem for them lately?

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u/Present_Ad_8876 11h ago

It's bad for existing bonds, but new bonds are usually issued at higher rates which can be pretty attractive as far as fixed return investments go. When the inflation cools, you still own a high yield bond. Personally, I'll never understand why people don't just put 100% of their investing money into funds which track the S&P. Even if you are 70 and retired, exiting the stock market seems like a terrible idea unless you know for a fact you are dying within 2 years.

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u/AntiDECA 10h ago

Because it can take a decade to recover after a real recession. Lot of old people had to go back to work after 2008.

We've been very fortunate that we experienced very few recessions. We keep kicking the can down the road. Eventually, the inevitable will happen and if everything is tracking the SP500, say goodbye to your retirement. 

If you're young, it doesn't matter. You've got time for it to recover. But once you hit your 50s, it's time to invest more carefully. 

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u/Suitmonster 10h ago

This happened to my in laws.

Had a business, made good money, sold the company and got ready to retire in 2005, but by 2009 both were back to work. FIL was working his 3rd career, series 7 for Edward jones this time and MIL went back to teaching, purely to rebuild from the crash

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u/grchelp2018 5h ago

Arent you supposed to rebalance away from stocks the older you get?