ST Alpha - ""If you buy 1 month Treasury Bills, you are rewarded with a yield of a gigantic 0.02% per year..." (Reading a Post)

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"If you buy 1 month Treasury Bills, you are rewarded with a yield of a gigantic 0.02% per year...

Posted by Loyola Jan 11 '09, 13:27

Now, imagine that you are a professional
money manager that is paid 1% a year to
invest other people�s money. If you feel that
being prudent is to sit in cash, and attempt to
charge a fee, the math is simple�0.02% per
year minus any reasonable fee is a negative
return. This is forcing many people out on the
risk spectrum at precisely the wrong moment,
when risks are the highest ever.

link (www.investmentpostcards.com)

Responses:

That's kind of the whole point of lowering interest rates - Stewie Jan 11, 13:34 3
- Oh yeah? -- nm - Loyola Jan 11, 13:45
- also, why is now a terrible time to take risk, when right before the crash it was a great time - Stewie Jan 11, 13:35 1
  - It's impossible to say with certainty when is and is not a great time to take on risk in your investing. But what you can say with some degree of - Loyola Jan 11, 13:51
Still better than investing in real estate right now. -- nm - Redmond Jan 11, 13:30

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"If you buy 1 month Treasury Bills, you are rewarded with a yield of a gigantic 0.02% per year...

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