If you have been struggling to find a safe place to invest your money and get a decent return, join the club. Apparently a number of Central Banks are facing the same problem. Central Banks normally invest in simple and safe securities like Bonds and T-Bills, but the lack of return on those investments has caused a change in mindset. Now, we are seeing Central Banks invest in Stocks and Currencies! Keep in mind, the Central Banks are designed to be the Alamo when it comes to banking in the United States. If there is a “run on the banks” or serious credit issues, the Central Banks are there to step in and lend money. If they are now investing in stocks and currencies, then won’t they go down with the rest of us in a crash?
In the meantime, expect the Stock Market to go higher as the chase for yield seems to end in one place…stocks. That’s the bottom of the funnel for now. I fear for what it will look like when that changes and urge you to cautiously invest in stocks and make sure you are well-diversified across your entire investment portfolio. It’s a great time to take profits or “peel the potato” as I like to say on the air. No one ever went broke taking a profit 🙂
Other topics discussed on today’s show:
– HAMP = Failure
– When you hurry, do you really get there faster?
– Should anyone get an Adjustable rate loan in today’s mortgage environment?
– When you should and shouldn’t buy real estate in San Diego (Step 8 of the Life Plan)
On Air Guest today:
Jon Jerotz or “JJ” as I call him, VP of Mortgage Lending for Guaranteed Rate and San Diego Mortgage Expert
Listen to hour 1 from today’s show here:
Listen to hour 2 from today’s show here: