Holding T-bills remains optimal based on yield spread, Meb Faber notes

Holding T-bills remains optimal based on yield spread, Meb Faber notes
Strategy favors T-bills over risky bonds

Meb Faber shares that, according to the strategy discussed in the referenced paper—investing in risky bonds only when the yield spread justifies—it would currently recommend staying 100 percent in T-bills.

He indicates this allocation remains the case today, with no changes to the suggested approach.

Faber previously highlighted that bonds have played critical roles in history, influencing figures such as Napoleon and U.S. President Donald Trump here. He has also commented on the growing competition among major asset managers following recent actions by Schwab and Fidelity here. These viewpoints provide additional context to his current bond allocation outlook.

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