Quote:
Originally Posted by Boomer
Exactly…….but I am now spending some sideline cash on brokered CDs. I had never bought those before. I did not know that they are bought at $1000, so the number of CDs I needed to buy were in the number of 1000s I wanted to put in.
I have not laddered at this point. I just put some money in for 9 months at 4.70 (or was it 4.75?) annualized rate, FDIC insured, call protected.
Now…..watch for it……there will be at least one poster who will pop in to tell me I am not keeping up with inflation. (sigh) I know that, of course.
Boomer Whipple
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Great strategy, same as I doing with our money and my parents' estate.
You are correct in blue as the inflation was supply driven and very sudden, and there aren't any instruments to "buy" to keep up. However, the answer to higher prices is higher prices where capitalism wants to take advantage of it and join in the production / sales of same.
and that's where prices will fall. There were plenty of opportunities for short sales to hedge/offset increased rates.
I predict that inflation with a basis issue, will suddenly fall, and that's when very low coupon t bonds will make out tremendously with high capital gains vs interest.
There are dividend income equity ETFs which offer diversification without having to buy individual stocks to get the diversification risk reduction which i recommend as the best "simple" strategy, looking at large cap stocks + utility industry with guaranteed rates of return.
finance professional in the utility industry and formerly mergers/acquisition analyst at an investment industry supplier buying and selling investment companies.