iShares 0-3 Month Treasury Bond ETF

🌟🌟🌟Crypto investors had a setback today as the Clarity Act failed to pass through the US Senate. Immediately a cold shiver ran through digital asset stocks with $Circle(CRCL.US)plunging over 11% overnight.

What should investors do?

Step Away from Crypto Stocks: Do not rush in to buy the dip on companies tied to regulatory approval. When Circle dropped 11% because the legal future just got clouded, cheap can get a whole lot cheaper before it finds a true bottom.

Park in the Safe Haven VIP Lounge: Parking your money in ultra short term vehicles like $iShares 0-3 Month Treasury Bond ETF(SGOV.US)or $Vanguard 0-3 Month Treasury Bill ETF(VBIL.US)lets you earn a safe, risk free yield while the political storm rages outside.

My Take

The failure of the Clarity Act isn't a sign that crypto is dying. It is just a sign that Washington is not quite ready for the Clarity Act. Circle is still an incredibly cash rich business but it has been locked back in a regulatory penalty box.

Let the politicians do the wrangling, our job is to simply make sure our wallet survives the performance.

The Beginner's Playbook: How To Invest Safely On FOMC Day

If you are a new investor, you do not need to hide under the bed until the FOMC meeting is over. You just need to trade your fragile sports car for an armoured financial vehicle.

Here is how to navigate tomorrow's rate hike:

Avoid the Siren Song of Catching Falling Knives: When a famous tech stock like $Tesla(TSLA.US)may drop 5% on Thursday, don't rush. In a rising interest rate environment, expensive stocks can get a whole lot cheaper before they find a true floor. Let the market digest the Fed Chair Kevin Warsh's words first.

Build an Unshakeable Cash Cushion: Parking your money in high yield cash vehicles or short term Treasury bills like $iShares 0-3 Month Treasury Bond ETF(SGOV.US)allows you to earn a steady yield while you wait for the storm to clear.

Anchor in Low Volatility Index ETFs: Instead of betting on single companies, spread your risk across broad index ETFs engineered for defence.

Look for funds like $Ps S&P Low Vol(SPLV.US)or $SPDR S&P 500 Val(SPYV.US). These track stable, cash rich companies in healthcare, utilities and consumer staples that keep making money regardless of what the Fed does.

As the legendary investor Benjamin Graham beautifully noted:

"The essence of investment management is the management of risks, not the management of returns" .

Take a deep breath, embrace the bumpy ride and focus on protecting your capital first!

Good luck to all my Longbridge friends.🥰🥰🥰🍀🍀🍀

🌟🌟🌟If you woke up this morning, and felt a sinking sensation when you see a sea of red , you are not alone. The financial world is collectively enduring a massive macroeconomic panic attack.

Fresh US military strikes on Iranian targets have driven crude oil prices to a blistering USD 95 a barrel, supercharging a brutal worldwide bond rout that has pushed the Federal Reserve rate hike odds for September toward a staggering 70%.

This is exactly why it is good to put some money into $iShares 0-3 Month Treasury Bond ETF(SGOV.US). While tech stocks are taking a hit, SGOV is sitting perfectly flat. It is safely accumulating risk free monthly yields , waiting for the opportunity to buy quality stocks at a steep discount.

🌟🌟🌟 Federal Reserve Chair Kevin Warsh's unexpectedly hawkish Jackson Hole debut has fundamentally realigned market expectations, driving Wall Street's bets for a September interest rate hike above 60%.

Just when investors were getting comfortable dreaming of aggressive rate cuts and endless liquidity, Warsh took the podium in Wyoming and turned off the music.

Warsh made one thing crystal clear: the Fed is commited to a discipline, not a decision. Translation? If the upcoming data stays hot, interest rates are going higher and White House's complaints ahead of November midterms won't stop him.

It is time to pivot from growth heavy portfolio to defensive portfolio.

A good strategy is to park some money into $iShares 0-3 Month Treasury Bond ETF(SGOV.US). SGOV locks your money into Treasury Bills with maturities of 3 months or less. It also has a razor thin expense ratio of 0.07%. The primary objective is capital preservation and low cost cash yield.

I don't think President Trump will be happy with Kevin Warsh.

The market has seen a slight pullback again over the past two days. Even those 'auntie-level' ETFs like $VG S&P 500(VOO.US) and $iShares Core S&P 500(IVV.US) have followed suit and dropped. Dividend-focused ones like $Schwab US Div Eq(SCHD.US) and $JPMorgan Nasdaq Equity Premium Income ETF(JEPQ.US) couldn't hold up either. It seems no matter how diversified your U.S. stock portfolio is, no one can escape when the market hammers down. Ironically, the most stable performers turned out to be those 'lying flat' short-term U.S. Treasury bond ETFs like $iShares 0-3 Month Treasury Bond ETF(SGOV.US), which rise little but fall even less... Don't ask. Right now, it just feels like 'gaining on the index but not making money.' All the returns come from just holding on passively.