RE:RE:RE:Will the reverse repo market replenish the TGA account? T-bill rates have to move much higher to attract interest. It would be prudent to move over to t-bills and cash during this time and less in equities. There is too much froth in the markets and I certainly see storm clouds ahead.
Worst case scenario is I'll earn 5% on my money risk free with some price appreciation potential but I underperform the stock market. Best case scenario is that I'll earn 5% risk free and the recession arrives in the second half followed by a significant stock market decline. In this case, I'll get some capital appreciation on my bonds plus some coupon payments and I'll have an opportunity to salivate on a number of companies to choose from. A double win for me.