Wednesday, April 8, 2009

Investing?

Hey thinking about risk and inflation it seems difficult to pick the right investment tools.
With major government spending inflation is only of a question of timing and magnitude.

Increase in Inflation usually immediately kills the bond market especially with these historically low interest rates on treasury notes. So if bonds are kind of risky at the moments should i rather invest in the stock market? Well the stock market increased significantly over the last two weeks but there is still significant uncertainty in the market especially with the government continuing its involvement in the business world.

My last post really made me think and led to the conclusion that buying a house i probably one of the safest high yield investments. Why? the house market is bottoming out, meaning house prices are low, now combine that with mortgage rates of 4.5% for Americans with decent credit and an $8,000 tax reduction. So financing a house is cheap and prices are very likely to go up. Investing in a house looks better than ever...

1 comment:

  1. very true... after looking at a trend line of mortgage interest rates we are at decade lows

    ReplyDelete