When should we start freaking out about money markets focused on US treasuries (e.g., VUSXX)? What are some other low-risk alternatives?

[u/diagana1]

I have been looking for a house since September and have kept my down payment in a money market fund invested in US treasuries (VUSXX). Of course I'm paying attention to the news and starting to worry a bit about what will happen in the US in the long term. At what point should I consider divesting from those and moving to another low-risk investment? What alternatives should I consider?

[u/moobycow]

If treasuries blow up the idea of 'low risk investment' is also gone. Might as well have purchased canned goods and guns.

[u/tanward → u/moobycow]

Great post to not freak people out. My first piece of advice is maybe stay off reddit where people tend to be a little reactionary.

For my next advice I would say maybe not put the money you need in the next 5 years into stocks. You should look into your allocation.

[u/jokull1234 → u/tanward]

Lmao the comment you’re replying to is doing the exact opposite of what you’re complaining about.

They’re saying keep money in treasuries cause there’s no point in worrying about money if it defaults.

[u/tanward → u/jokull1234]

I'm not talking about what is said but how he said it. I am sorry I am going to keep calm and keep on buying.

[u/fed875 → u/tanward]

This is a how not to invest sub. The most upvoted comments are antithetical to traditional investing advice.

[u/Bekabam → u/tanward]

If US treasuries lose global confidence, your money sitting in cash will also be worthless. Regardless of what currency it's in.

[u/Reasonable_Base9537]

I wouldn't worry about VUSXX. If that lost value it would mean we're cooked - there wouldn't be a "safe investment" to go to. At that point the stock market would be destroyed, bond market destroyed, and the dollar would be losing value. Theres not much else besides holding gold and silver maybe or trying to find another government currency that is holding up but if it got that bad they're all going down.

[u/ziggy029]

If US Treasuries become unsafe, the world has gone full blown Mad Max and nothing is safe.

[u/EcrofLeinad]

If your concern is US treasuries then you shouldn’t move to anything else denominated in US Dollars ($). You would have to look to fixed income assets held in other currencies; for example the European Euro (€), British Pound (£), or Japanese Yen (¥).

[u/darrenwoolsey → u/EcrofLeinad]

this. Just have a diversified bucket of bonds.

[u/Ajk337 → u/EcrofLeinad]

BNDX is good for this I think

[u/WafflingToast → u/EcrofLeinad]

Don’t forget Swiss Francs. Probably the most stable currency out there.

[u/lab-gone-wrong]

If VUSXX goes down, it means the dollar is done

Every currency in the world is backed by the dollar (yes even Bitcoin via Tether) so if the dollar is done, investing is done

There's no "safe asset" that would survive a US treasuries crash. None. At that point financial investing is over and hoarding high value physical assets until the global financial markets reset would be the only option.

[u/JohnnyBaboon123 → u/lab-gone-wrong]

even Bitcoin via Tether

what? bitcoin isnt really related to tether. tether is a stable coin that is pegged to the dollar. it's used to transfer value around exchanges and to generate interest. Bitcoin is not backed by tether.

[u/Own_Self5950]

gold and silver are usually best bets here.

[u/i-love-freesias]

PULS is my alternative.

[u/LividChocolate4786]

Would you buy an IOU from Donald Trump? Because that's essentially what buying treasuries is going to be if this goes on.

[u/CenlaLowell]

Freak out for what? Keep investing and this to shall pass

[u/inertm]

BNDX?

[u/therealjerseytom]

Nothing to freak out about.