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When it comes to creating a diversified investment portfolio, stocks and bonds are typically the first items that pop into your the mind. However, there's a different type of investment that's just as significant, if perhaps more important: US treasuries. US Treasuries are bonds issued by the federal government which can be a safe place to invest in during times of market volatility. In this article we'll take a deeper review of the reasons the reasons why US treasuries should be a key component of your investment strategy.
What exactly are US Treasuries?

米国債 are bonds issued by the federal government. When you purchase an US Treasury bond, you're essentially borrowing money from the federal government, and they'll repay you the principal amount plus interest at a later date. US Treasuries come in various maturity levels, including shorter-term Treasury bills (maturing in 1 year or less) and intermediate-term notes (maturing in between 2 and 10 years) as well as long-term bonds (maturing in more than 10 years).

What is the difference between US Treasuries and other bonds? US Treasuries differ from other types of bonds

One of the major distinctions among US Treasury bonds and other kinds of bonds is the degree of risk. US Treasury bonds are believed to be among the most secure investment options that you can make. Since they are backed by the complete confidence and trust of the US government, the risk of default is extremely low. This makes them a popular option for investors seeking a safe haven during periods of market volatile.

Contrary to corporate bonds, municipal bonds and municipal bonds are issued by companies and municipalities, respectively. While these bonds are a good investment, they are more prone to a greater degree of risk. If the issuer is in default on its debt, you could lose a portion or all your investment.
Why US Treasuries should be a essential element in your investment strategy

US treasuries are an important element of a diversified portfolio of investments. They offer a relatively low level of risk and can give you a steady flow of income in the form of interest payments. They can also serve as a "safe place to be" in times of market volatility, helping ensure that your portfolio is protected from loss.

In addition, US treasuries can be used to control risk in portfolios. If, for instance, you're managing a portfolio with high risk which is heavily invested with stocks, then you may consider adding some US treasuries to help mitigate the risk.

Furthermore, US treasuries are considered as a "risk-free" investment, due to their low risk and low return, they are often used as a standard for other investments. Thus, by having US treasuries as part of your portfolio you will be able to compare the return on other investments to those that are risk free.
Conclusion

In the end, US treasuries should be the primary element of your investment strategy. They offer a low level of risk, a steady stream of income, serve as an "safe haven" during periods of market volatility and aid in managing risk for portfolios. They can also be used as benchmark in other types of investments. If you're not already invested in US Treasury securities, you should consider adding them to your portfolio to help diversify your portfolio and reduce the risk.