What is your "Dry Powder" in ? a look at USFR .

 Market Talk

The overall stock market is held hostage by perceived events of the future. The playground is filled with Cnbc like traders riding a seesaw of opinion on inflation vs recession and the Fed as the monitor.  How interest rate control will affect the market and the hopeful "soft landing" scenario remains to be seen.

 

Geopolitical global factors are playing out that I will just call disturbing for the purpose of this market and stock post. When we use the word "disturbing" it is quite an understatement with the backdrop of WAR and potential future war-like behavior in the world.

 

How you may ask , do these views affect "stock picking"?  

 Stock Talk

With the above market view , it seems that parking some assets out of the overall market may be prudent.  But what is way to get a good return based on the relative higher interest rates?  Perhaps parking some cash in an ETF with the ability to get in and out in a flexible way and still take advantage of high interest rates is something to think about.   The ETF with symbol USFR may be a decent place to park some dry powder. It is based on variable interest rates of US treasury notes. As  long as Wisdom tree manages the ETF according to the plan goals, it should return a better interest rate than many accumulating every month.  With the variable feature, maybe look forward to an interest rate of over 2% to even over 4% at present.

 USFR

"Fund Overview
The WisdomTree Floating Rate Treasury Fund seeks to track the price and yield
performance, before fees and expenses, of an index that measures the performance of
the market for floating rate public obligations of the U.S. Treasury"

https://www.wisdomtree.com/investments/-/media/us-media-files/documents/resource-library/fund-fact-sheets/fixed-income/wisdomtree-factsheet-usfr-1648.pd

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ALL in my humble opinion, scroll down and read more.

This site does NOT make Buy / Sell recommendations.
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