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Ernest's avatar

1. We were scrambling to lock in a 2.6% mortgage in early 2021 because it was unlikely that rates would be that low again for quite a while. Millions of refinancing homeowners turned out to be the smart money.

2. I am baffled that the banks were making themselves so illiquid with long-term debt. While I had some aggregate bond fund in my portfolio in 2020-21, there was also TIPs, stable value (3 year duration with insurance company hedging of interest rate risk), and just plain cash. The cash paid 0.01% interest, but I didn't see anywhere to put it that did not carry significant interest rate risk so I waited until Q3 and Q4 2022 to start deploying that in short term bond funds, CDs etc. I think it is the difference of looking long-term instead of focusing on quarterly and annual profit statements.

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bdhfdfhgf's avatar

Rare as a hound's tooth: concise, accurate, well written and sans agenda - well done!

Allison, my aim is true.

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