The Asymmetric War: Why Short-Term Treasuries Are The Logical Shelter

Kenio Fontes2.08K FollowersFollow5ShareSavePlay(11min)CommentsSummaryShort-term US Treasury ETFs (BIL, VBIL, SGOV) are rated a buy amid heightened Middle East conflict risk and inflationary pressures.These ETFs offer attractive yields (~3.42% for VBIL), high liquidity, and 'dry powder' flexibility for volatile market scenarios.Prolonged conflict could drive oil prices higher, fueling inflation and keeping US interest rates elevated for longer.Short-term Treasuries outperform long-term bonds in rising rate environments and provide a safer alternative to overvalued defensive equities.

Getty Images Working with forecasts, especially in completely uncertain scenarios such as the one we are seeing now, is quite challenging, which is why it is worth starting this article with a disclaimer. My intention is not to accurately predict any scenario orThis article was written byKenio Fontes2.08K FollowersFollowEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.