RE:RE:RE:Inflation Hi CptnBlueberries, my guess is as good as yours :)
Welcome to Stockhouse!
If central banks believe we are in restrictive policy then you want to be in short term t-bills. The yield curve is inverted which won't last forever. Long term t-notes have good capital appreciation potential but lower coupon payments.
A 5 year treasury note is not bad giving you about 4% in the US and a bit lower in Canada. A 10 year t-note on the other hand will probably give you more appreciation than a 5 year t-note.
Here's my big macro recommendation:
1) pay your mortgage if you have one. You get a very high after tax return on your money.
2) start buying bonds or at least consider fixed income as part of your portfolio.
3) pick stocks that pay a good dividend and a low payout ratio. Preferably companies that pay dividends above the inflation rate as a good hedge and with stable free cash flow generation.
4) lighten up on stocks and increase your bond exposure
5) I would rather hold t-bills than cash as they will outperform inflation going forward.
Hope that helps.