Mark, Shrewd question. Thanks.
You’re right that if my purpose in investing was to make as much money as possible as might be consistent with risk, then I should trade out of anything that offered less return than might be offered elsewhere.
But here are the two practical reality for me with trying to put money to work. Right now, markets are in chaos due to US domestic and foreign policies, and, second, I’ve got more cash parked in just T-bills than the typical retiree has in his or her whole account.
Trying to increase the money I have isn’t my problem. I’ve got ‘Enough’, and the last thing I want to do is grub for more. What I need instead of high-return investments is low-risk/low-effort ones. That’s where new money is going as I can find opportunities that don’t scare me.
Some are hugely profitable, such as my metals and miners positions that I began edging into two years ago. (Ridiculous, 200% to 300% gains.) Some new money positions are offering just 7% to 9%, such as the exchanged-traded bonds I’m building a position in. Hence, if a position such as those Mich Tob zeros isn’t causing me grief, I’m content to let it ride.
The reason I posted about that zero coupon bond is that I’ll put any zero-coupon bond --munis included-- into a tax-sheltered account, which runs exactly opposite of conventional practice.