iShares 0-3 Month Treasury Bond ETF [SGOV] Stock Forecast

Conservative investors are benefiting from the current macro environment, with cash-like funds offering 5%+ yields. Cash investments have not been profitable in the past decade, but higher interest rates are making them more attractive now. I utilize two funds for my "dry powder" investments, with varying levels of risk and liquidity.

The rise of income-driven investing has created immense demand for high-dividend investments, often at the cost of added risk. Since the risk-free rate is 5.25%, income-driven investors have much better options than years ago to earn a good income without compromising on risk. Extreme US debt levels suggest that inflation and interest rates may remain elevated over the coming decade, likely with interest rates above inflation.

Equity markets traded slightly up, while short-term Treasury yields increased by more than 2.0%. After logging a record-breaking weekly inflow last week, high-yield ETFs posted their second-largest weekly inflow. Short/intermediate investment grade funds have seen 10 straight weekly outflows while recording three consecutive weekly gains.

Bond ETFs are a fickle bunch. Inverted yield curves mean many of the biggest options saw massive drawdowns this year.

The Volatility Index is used by investors to track the short-term direction of the stock market. The VIX has shown a correlation with the S&P 500 during past recessions, but its effectiveness as a forward indicator is uncertain. Factors such as rising Treasury yields, increasing government debt, and the dumping of US bonds by adversaries and allies pose risks to the market.

The ultra short-term corner of the bond market has been hitting a 52-week high lately.

For investors seeking momentum, Ishares 0-3 Month Treasury Bond ETF SGOV is probably on the radar. The fund just hit a 52-week high and is up 0.73% from its 52-week low price of $99.96/share.

Dividend stocks are traditionally viewed as more conservative investments due to the stability of income, historical performance, and risk mitigation attributes. Dividend stocks provide a steady stream of income through dividends, acting as a cushion during market downturns. However, Mr. Market is now sending a stern warning to dividend investors.

Dividend growth stocks, particularly REITs and utilities, have been slumping due to rising long-term interest rates. The richest man in American history was a big believer in the power of dividends. We share three once-in-a-decade opportunities to buy elite high-yielding dividend growth stocks at compelling discounts.

GBIL: Balancing Income And Principal Protection

iShares 0-3 Month Treasury Bond ETF is a US stock and trading under the symbol SGOV

iShares 0-3 Month Treasury Bond ETF stock price is $100.41 today.

Yes, iShares 0-3 Month Treasury Bond ETF is a publicly traded company.