I have people come to me frequently asking to invest 10 or 20 thousand dollars and I tell them to go get some physical silver or gold.
Apmex has 1 oz silver buffaloes right now at about a dollar thirty over spot.
Posted on 12/12/2008 11:51:18 PM PST by TigerLikesRooster
Ping!
Solid corporate bonds are not a bad bet. CDs, less than $100K are as good as FDIC, 1 yr 3.27, 2 yr 3.35% on average, 4%+ is easy to find out 3yrs.
yitbos
I recently went to the bond market. It’s pretty safe.
No. If bonds are high - why buy?
This will all be exacerbated by the increasing number of medicare, medicaid, and social security beneficiaries seeking tax payer funded services which will be further exacerbated by the decreasing number of tax payers who will have to be squeezed harder and harder to fund our socialist utopia.
I’m looking at investing in the old matress myself. It earns about as much as a bond and it’s even safer and way more liquid.
Cash will be king for now. Hell I bought myself a nice TV at a pretty kick a$$ price. Next up a cheap car.
I’m waiting for the government to outlaw private ownership of gold again
Yup. Unfortunately, cash’s reign may be short lived. Paying off debts might be a good idea right now too or, then again, wait and pay off your 30 year mortgage with the worthless dollars in your matress. I guess it depends on what you really believe. I’m thinking it’s probably time to prepare for the worst though. The day may be coming where “pulling your money out” ceases to be an option.
For security and interest on the bond.
You must look at yeild to maturity.
For instance a 10yr Treasury has a 3.75% coupon. Every year (1/2x6mo.) Uncle sam will send you $37.50 on a $1000 bond. But, right now you have to pay $1102.50 ($110-8/32) for it. That means over 10 years you are actually getting a yield of 2.57%.
But if you own a bond, lets say a 10yr 3.75 that you bought 6 months ago for $1000 when the yield to maturity was 3.75, and you want to sell it today, you could get $1102.50 for it (minus a fraction for it being 6 mo. old).
yitbos
At;as Shrugged
Also for liquidity. It is very easy to sell Treasuries, or other high quality corporate bonds. The price will fluctuate. But Treasuries will always pay interest to maturity and pay the principal at due date. Corporate bonds are a little riskier. But, when available, Johnson & Johnson, etc. aren't going bust.
Your broker can show you his portfolio of inventoried bonds. Or you can go on the open market and put in a bid.
yitbos
Again, think about the big plays in oil that has made so many rich (Buffet, Grahamn, etc.). Alternative fuels are about 5-7 years out to affect oil futures. Even then, those alternatives will be a slow growth play.
The world is dependent upon oil simply because it provides so much of our energy and manufacturing needs. It may go down in the short term, but will go up in the long term if you are an investor and not a trader.
Once the US and world economy starts to recover from this recession (2-3 years), oil will sky-rocket. Watch.
Think natural gas. No one ever talks about using less.
yitbos
Let print more money. Then lend gazillions out to people who are tapped out. Then say Hi! and then eat Pizza! Then drink beer until we are all passed out! YEAH!
Raytheon, Boing, and Lockheed-Martin have a hole lot of contracts out there for missiles, satellites and aircraft. Buy those stocks while they are cheap. And sit with them for several years. I know what those programs are.
Buy defense with an incoming anti-defense, pro-peace administration? You’re sure about that?
"Inflation sensitive assets"? Why doesn't he just say silver and gold?
I have people come to me frequently asking to invest 10 or 20 thousand dollars and I tell them to go get some physical silver or gold.
Apmex has 1 oz silver buffaloes right now at about a dollar thirty over spot.
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