To Sell Or Not To Sell ?

sams1985 | Jan 5, 2024 | 781 posts since 2022

I’m sure I’m not the only one with sub 5% 60 month brokered CD’s on here. I have a few left. One in particular-60 month @ 4.5 for $100k.

I can dump it for a profit if I act today. Everyone saw that blazing hot jobs report this morning. FVX and TNX back above 40. Fed futures is obv useless.

Hedge my bets and sell or leave it and be done ? IMHO I think 5%+ 60 month will be back…one hot CPI and treasuries will fly and 2024 rate cuts *should* be off the table but will the Fed have the courage to hold rates during an election year?

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Answers

racecar | Jan 5, 2024 | 616 posts since 2014

I don't know. I don't see rates dropping off a cliff but I don't see them raising or staying the same either. I see them going down either very slowly (but still down) or going down a bit, plateau, going down a bit, plateau, etc. But no one knows.

If you CAN'T make a profit by selling, I'd keep it; 4.5% for 5yrs isn't bad. Remember when the 3% CD was the holy grail?

If you CAN make a profit you could sell it and try to see what you can get now for maybe a small profit in the end, but I don't know if I'd stuff it under the mattress. No one knows of course, but it's the 5yr ones that have been dropping (including some of the places I bank at). You could stash it in shorter-term ones for 5.XX% (1-2yrs, even 3yrs still at a few places) and see where we are in 2-3 years. I guess if I had multiple ones I'd try that for some, but certainly not all. "Common sense" doesn't alawys apply (look at the relationship between interest rates and bonds over the last couple years) so it's a roll of the dice. Put your eggs in a few different baskets and have a nice tuna sandwich for lunch.

sams1985 | Jan 5, 2024 | 781 posts since 2022

Thank you for the advice. I ended up selling 1/2 and keeping $50k in the CD. The other 50k I’ll roll into my Fidelity treasury only fund which is paying 5.23 currently and see what happens.

Kirkland | Jan 5, 2024 | 374 posts since 2014

Sell it quick! Cash is still king, Cash gives you opportunity!

decades | Jan 5, 2024 | 124 posts since 2010

I've got a 4.1% am on hold right now waiting to dump. $102600. jumped the gun at EFCU a bit. They told me a specialist would call back withing 24 hours. ay ya ay ya but gives me some time to think about it.

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