The appealing T-Bills

6 months T-Bills currently yield approximatively the same than the US aggregate bond market and the US equity market. This raises the question why investors should take the risk of investing in either bonds or equities. For bonds investors are indeed currently not being remunerated on an aggregate basis for duration or credit risk. For equities, equity risk premium is inexistent on this measure. While putting 100% of the portfolios in T-Bills is probably not the answer, we believe selectivity is key in selecting individual bonds and equities. On the equity side for example, we still find opportunities of good businesses trading at substantial discounts to their intrinsic values globally. The restrictive monetary policies of central banks have made our work as portfolio managers harder (but also more rewarding).