Margarita M. Phillips 
Renowned investment adviser and GK ETF CEO Ross Gerber tweeted that he is currently buying bonds at attractive yields. He further noted that he had purchased treasury bills for clients maturing within the year with an average yield of 3%. “We are now seeing buyers of the 10-year as we like those yields for long-term income seekers,” added Gerber.
In a debate on whether the market is convinced of the Federal Reserve’s ability to control inflation, Gerber noted that 10-year yields should hold around 3.5% if the market is convinced or increase further if the market is uncertain.
Twitterati responded with both curiosity and sarcasm. A few inquired about the bonds he was buying, and some even suggested I Bond as a safe bet. An I Bond is an inflation-adjusted US savings bond that currently pays around 9.6% per year until October.
Meanwhile, many argued against the thesis and said no yield was strong enough to beat the current peak inflation figures. A handful even asked him why he lost faith in his all-time favorite stocks for electric vehicles and tech like Tesla (TSLA), Arcimoto (UVF), et al.
Gerber said, “Equity valuations are very compelling if you consider 10-years at 3.5%, mortgages at 5% and equity yields at 6.1% plus dividends of 2%.” This statement was also followed by nasty messages that mortgages were already above 6% and that dividends are not added to earnings yield, they are actually part of it.
While it’s difficult to gauge and time the market in these uncertain times, investment advisors are dealing with the weight of their sometimes misguided investment choices.
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