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I'm retired and mostly not in the market. I won't invest in the market while it is overpriced. With such low interest rates, what is a safe investment?

airstrike 7y ago
Defensive, boring, high-dividend stocks?
sand_castles 7y ago
There is no interest without risk. I suggest Iranian, Argentinian bonds if you really want to get that blood flowing.
- xeromal 7y ago
  I wonder if syrian bonds are available?
lonelappde 7y ago
invest in a new innovation that cures or mitigates covid-19, or cash and take your lumps. Money is a shared delusion; you can't force it to grow or retain value. Enjoy the net win factoring in the last 10years.
fourstar 7y ago
BTC.
misja111 7y ago
If you believe the market is overpriced you could consider investing in long term put options.
companyhen 7y ago
BTC and ETH is worth a few % of your portfolio depending on your risk tolerance. :)
natex 7y ago
The business cycle has been on the down turn for a few months now (though folks are just now beginning to notice it). Historically, Treasuries, long-term GOV'T bonds, and gold perform well during this part of the cycle. If you must have equities, utilities and REITs perform well but only in relation to other S&P stocks.
deleted 7y ago
[deleted]
twic 7y ago
Structured products! More or less, this is a deal with an investment bank where they take your money and hold onto it for a fixed term, while watching the level of a stock market index. If the index ever gets above a pre-determined "trigger level", they give you your money back early, with interest calculated at a fixed rate. If it never gets above the trigger level, then at the end of the term, they give you back your money, without interest. Unless the index has fallen below a "barrier level", in which case you don't get all your money back - you lose it in proportion to the fall in the index. So, it's a bit like investing in the stock market - if the market goes up, you make money, if it goes down, you lose money - but rounded to fixed levels. Here's an example: http://www.marianainvestments.com/adviser/contact/view-plan/?id=132916 http://www.marianainvestments.com/adviser/contact/view-plan/... The term is 10 years, the index is the FTSE 100, the barrier level is 70%; there are three options for interest rates and trigger levels, and the safest, option 1, pays 8.55%, and has trigger levels like this: Year Level 2 102.5% 3 100.0% 4 97.5% 5 95.0% 6 92.5% 7 90.0% 8 87.5% 9 85.0% 10 82.5% So basically, if you think the FTSE 100 will hold its current level over ten years, or even decline slightly, you get a 8.55% per annum payout. Or, if you think that it will make it to 105% of its current level, you could go for the full-blooded option 3, which pays out 14% per annum. And bear in mind that a fall in the index only matters at the end of the term. If there's a crash, and the index has fallen to 50% of the current level by year 3, the product keeps running. If the index recovers to 87.5% of the current level five years after that, the product pays out! It literally cannot go tits up.

airstrike 7y ago

Defensive, boring, high-dividend stocks?

sand_castles 7y ago

There is no interest without risk. I suggest Iranian, Argentinian bonds if you really want to get that blood flowing.

xeromal 7y ago
I wonder if syrian bonds are available?

lonelappde 7y ago

invest in a new innovation that cures or mitigates covid-19, or cash and take your lumps. Money is a shared delusion; you can't force it to grow or retain value. Enjoy the net win factoring in the last 10years.

fourstar 7y ago

BTC.

misja111 7y ago

If you believe the market is overpriced you could consider investing in long term put options.

companyhen 7y ago

BTC and ETH is worth a few % of your portfolio depending on your risk tolerance. :)

natex 7y ago

The business cycle has been on the down turn for a few months now (though folks are just now beginning to notice it). Historically, Treasuries, long-term GOV'T bonds, and gold perform well during this part of the cycle. If you must have equities, utilities and REITs perform well but only in relation to other S&P stocks.

deleted 7y ago

[deleted]

twic 7y ago

Structured products! More or less, this is a deal with an investment bank where they take your money and hold onto it for a fixed term, while watching the level of a stock market index. If the index ever gets above a pre-determined "trigger level", they give you your money back early, with interest calculated at a fixed rate. If it never gets above the trigger level, then at the end of the term, they give you back your money, without interest. Unless the index has fallen below a "barrier level", in which case you don't get all your money back - you lose it in proportion to the fall in the index. So, it's a bit like investing in the stock market - if the market goes up, you make money, if it goes down, you lose money - but rounded to fixed levels. Here's an example: http://www.marianainvestments.com/adviser/contact/view-plan/?id=132916 http://www.marianainvestments.com/adviser/contact/view-plan/... The term is 10 years, the index is the FTSE 100, the barrier level is 70%; there are three options for interest rates and trigger levels, and the safest, option 1, pays 8.55%, and has trigger levels like this: Year Level 2 102.5% 3 100.0% 4 97.5% 5 95.0% 6 92.5% 7 90.0% 8 87.5% 9 85.0% 10 82.5% So basically, if you think the FTSE 100 will hold its current level over ten years, or even decline slightly, you get a 8.55% per annum payout. Or, if you think that it will make it to 105% of its current level, you could go for the full-blooded option 3, which pays out 14% per annum. And bear in mind that a fall in the index only matters at the end of the term. If there's a crash, and the index has fallen to 50% of the current level by year 3, the product keeps running. If the index recovers to 87.5% of the current level five years after that, the product pays out! It literally cannot go tits up.