....would buy a 2 year t-note yielding 1.3%, and then pay ordinary interest income tax on it??!!!??? For a whopping 0.91% return??? Before inflation!!!!!!
Those who are even too petrified to put their money in money market accounts and those who want to "ride out the storm" somewhere safe.
People that don't know any better? Maybe people that are scared their bank will go under and are choosing to do that over using their money to stuff their mattress with? Hell I don't know...I'm just guessing.
cd's have a relatively small penalty for early withdrawal, so why not put your cash in a 5 year cd with a much higher interest rate paid monthly and take it out if you need it. That 's what I do.
Dow down little more than 7% for the quarter. S&P500 down almost 10%. Nasdaq down a little over 14%. Treauries over equities. I remember last summer someone said that even a 5 year could see where rates on bonds were going (implying higher rates were a lock). That 5 year old is in special ed.
It is simply a reflection of people willing to PAY for SAFETY. A flight to quality. Nothing new here.