Saturday,
May 18, 2024
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The week in review
• Aprilās CPI report showed overall prices increased 0.3% from March, less than expected, and 3.4% annually. Core inflation also increased 0.3% from March, but fell to 3.6% annually, its lowest reading since April 2021. Following the report, the U.S. 10-year yield slid below 4.4%.
• In a speech, Fed Chair Jerome Powell reiterated that inflation is falling slower than expected and the central bank will keep rates at their current level until more progress is made.
• Building permits fell 3% in April, reaching their lowest level since December 2022. Meanwhile, housing starts bounced 5.7% from their more than 3.5-year low made in March.
For more economic news, visit On the Money ā SoFiās one-stop-shop for news, trends, and tips!
Investing in Treasuries to diversify your investments
Nobody has a crystal ball at home, showing them when and where the market will move. Thatās why portfolio diversification is so important.
There are several different strategies when it comes to diversification and many asset classes to choose from.
Fixed-income strategies
Bonds, or fixed income assets, can help diversify your portfolio, especially if you stuck to the stock market when you built it. Bonds earn a fixed income in the form of interest, and some, such as government securities, may be less volatile than certain stocks. This is how diversifying can help offset some of the risk that comes with stock investing.
The Treasury Department issues different types of debt: Treasury bills, notes, bonds, and inflation-protected securities (TIPS).
Treasury bonds are long-term loans made to the government that generally offer the highest interest rate for investors. Treasury notes are similar but have a maturity of 10 years or less.
T-bills are shorter-term debt obligations that mature in a year or less, and TIPS are bonds that are indexed to inflation.
This weekās top stories
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