Financial Advice

Out of context: Reply #48

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  • nb1

    https://imgur.com/a/ycXjpRB

    The inverted Yield Curve is making its way to the banks. These are current CD rates at Capital One. You get a lower interest rate if you commit your money for a longer period of time. Fascinating.

    So what do we do with this information?

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    • Seems to me the smart move is buying the 12-month and hoping the trend is wrong. But, that feels really naive.nb
    • 12mutopian
    • hmm, this is expected.no? capOne caps around 2.4% for 5Yplash
    • wtf? usually it's the longer terms that give better yields, no?monospaced
    • ^ Yes, when the economy is growing and rates are rising. Rates are now falling, and banks expect them to be even lower in 3 years, so they factor that in.monNom
    • This is actually based on the price of bonds and insurance in the marketplace, as opposed to the banks just predicting the future.monNom
    • Uh, maybe Google Inverted Yeild Curve before commentingnb
    • But yeah.nb
    • Possibly lower or even negative interest rates in the future! Or, is this Yield Curve more about uncertainty than predictionnb
    • this is so weird ...monospaced
    • Buy bonds, and hold on to your butts.sarahfailin
    • Why do people do CD's? Outside of 08' my worst year passively investing in etf's has been 6%. I roped in 12% last year doing nothing.section_014
    • section_014, generally as a hedge. If youve been investing in ETFs for less than 10 years you might be in for a rude awakening soonnb
    • Oh outside of 08. So, how long before 08 were you doing ETFs?nb
    • It will be negative for sure. All personally wealth will be stripped from citizens.Hayoth
    • Who buy CDs! MP3 BABYYYY!Bennn
    • I started in 07 (was too poor before). It was mostly mutual funds. I never sold anything when the market crashed either. Those funds eventually rebounded.section_014
    • I'm not gonna sell if it crashes again, either. I'll buy like a mofo when it looks like the bottom.section_014
    • Lol hayoth do you actually invest that way? Based on your insane political views?nb
    • do people invest in thinking things rebound for no fundamental reason NB? whichdeathboy
    • seems more crazy?deathboy
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