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A comment on Why is the stock market rallying when the economy is so bad?. Parent comment

Re:Why is the stock market rallying when the economy is so bad? by arcticbull on Monday May 11, 2020 @02:49AM (#23139504)
> You can expect around 1.5% in the US for IG bonds.

Sure, but the fed's target inflation rate is around 2%. That means you're in fact losing 0.5% of your purchasing power per annum. That's just losing money slower.

There is in fact, no alternative.

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Re:Why is the stock market rallying when the economy is so bad? by mixmastamyk on Monday May 11, 2020 @03:24AM (#23139673)
Also the interest will be taxed.
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Re:Why is the stock market rallying when the economy is so bad? by Galanwe on Monday May 11, 2020 @04:17AM (#23139962)
Not sure how taxes work in the US exactly. Here in Hong Kong we have withholding tax but no capital gain tax, so you can effectively buy zero coupon 3 month govy notes tax free.
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Re:Why is the stock market rallying when the economy is so bad? by blaser-waffle on Monday May 11, 2020 @09:16AM (#23141739)
Depends on the bonds. Bonds issued by the government (local/municipal/etc.) are often not taxed as an incentive to get you to lend money to the government.
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