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So does this mean I should be holding cash?
by giardini 4y ago
So does this mean I should be holding cash?
- Invictus0 4y agoMMFs and GOVT
- ars 4y agoWhy GOVT instead of SHV?
- mcsniff 4y agoCash is quickly losing value. IMO, hold useful assets. Fix things that need to be repaired. Slowly acquire items you want while they are readily available and relatively inexpensive. Above all, be in good health, physically, mentally, emotionally.
- game_the0ry 4y agoSo like: * tools * cars * gold * generators * gas * etc
- ezekg 4y agoIf we're mentioning gas, we might as well mention of valuable "assets": * food (canned, livestock, garden, etc.) * firearms * ammo * etc.
- amalcon 4y agoStockpiling unleaded gasoline in or near your home is a poor idea. It's more likely to suffer exothermic depreciation than to successfully hedge against anything in particular. Unleaded will generally last less than a year without stabilizers anyway. Diesel is a little better, but still not really the best choice.
- inconceivable 4y agoright, gas goes bad and then is a pain in the ass to get rid of. i still have a few gallons i need to dispose of from march 2020... ugh
- deleted 4y ago[deleted]
- mikestew 4y agoWait until the car has half a tank, throw it in there. At worst, the car will not run as well as you might be used to. Common case: you won't notice the difference. Your car will be far more tolerant of old gas than your mower or weed trimmer.
- rs999gti 4y ago> Diesel is a little better, but still not really the best choice. In an apocalyptic situation, a diesel car might be the best choice. As long as there is some kind of heavy oil (animal, plant, or mineral), you can basically run the car.
- wcarron 4y agoSkip the gas, buy cigarettes and booze.
- ars 4y agoNo, it means you should not invest in banks, and instead buy short-term bonds of better companies or treasuries. Long-term bonds are more risky right now get the short-term ones.
- unshavedyak 4y agoWhy would long term bonds be more risky now?
- hnfong 4y agoThe same reason why banks are underwater -- rising interest rates will cause long term bonds to drop in value (because you can buy debt at a higher return/interest rate, so fixed interest rate bonds have to drop in price to compensate).
- thfuran 4y agoThat doesn't matter if you hold them to term.
- ars 4y agoYes, it does matter because it means you made less money that you would have with other bonds of equal risk. That's exactly why their value goes down: They make you less money. Their value goes down exactly as much as the difference in how much money you could have made on other bonds. (i.e. you can take the loss now, in lower value, or take the loss at the end by earning less.)
- thfuran 4y ago>They make you less money. No, they make you precisely as much money as they were ever going to, with the rates fixed at issue. That some other investment strategy turns out after the fact to have been a better option doesn't change that.
- deleted 4y ago[deleted]
- anotherman554 4y agoIf you change your investment strategy every time someone posts an alarming article you probably aren't going to do very well as an investor.
- frozenport 4y agoSadly it means that you'll need more active strategies to seek alpha. For example I've been chasing the AI bubble just to squeeze out 1% gains. If I had just left funds in Vanguard I would be down.
- tiahura 4y agoShould have bought a CD paying 5%.
- hnfong 4y agoWhat are you talking about? Interest rates for savings/cd accounts for USD is like 4% now....
- amalcon 4y agoYeah, the banks are basically falling all over themselves to sell CDs, since this is how a bank can borrow with a longer time horizon. CDs exist to hedge the kind of risk that has been causing these failures.
- haswell 4y ago> If I had just left funds in Vanguard I would be down. My vanguard lazy portfolio is at +2.2% over the last year, and +5% since ~2016. Cash is bringing in 4% or better for decent savings accounts, and a CD ladder would be better still. I’m not claiming this will continue to be true, but chasing AI to get 1% sounds like something to reevaluate.
- tekla 4y agoWhat the hell are you doing. Im 5% up right now in the past 5 years and 2% up in the last year and I dont pay attention to it at all. You might want to try stop attempting to be smart.
- ricardobayes 4y agoThat doesn't mean a lot without context, in some countries gov't bonds yield 16% now but their real inflation is 50%+.
- more_corn 4y agoThere’s still a housing crisis. Why don’t you buy some land and build some housing? That would be a productive and stable use of capital.
- midoridensha 4y agoBeing a landlord is a full-time job, and very risky. Just building housing for sale is also a full-time job, and not exactly easy to do. You can't just give a pile of cash to a general contractor and expect a perfect, turn-key house as a result. There's a reason that companies specialize in the things you suggest here. Of course, you could just invest in those companies, but that's no different than investing in any stock.
- legitster 4y agoIf you are holding onto more than $250,000 in a checking account, you probably should be doing something better with your money anyway.