FOMC Chairman Powell answers a reporter’s question at the press conference.

You still have time to lock in rates you can sink your teeth into. If you have lazy cash sitting around eating all your food and making a mess of the place then put it to work. I’m here when you’re ready to talk. As I wrote to you back in October, if you’re overexposed to stocks, then look here.

Originally posted October 27, 2023.

If you’re overexposed to the stock market, it’s been a long time since risk-free Treasury bills offered yields like these. Yields you can sink your teeth into and do it again in a few months.

Your Survival Guy isn’t in the prediction business. Predictability is not something you can say about tech-heavy Nasdaq, for example. Because we’ve seen how long it can stay down when problems arise.

But that’s not my concern today. My concern is making sure you have multiple streams of income, so to speak. And I like doing it without you being exposed to leverage, which basically eliminates a lot of real estate on the private market. When the numbers sound good, and there’s too much leverage, any good real estate deal can turn bad real quick.

When it comes to your hard-earned cash, I want you to think in terms of time. How much time will it take to get paid? With Treasury bills, it’s three months. That’s the risk-free rate they teach you in business school. But nothing is entirely risk-free, right? You will be faced with endless possibilities of what to do with that money again in three months. Today may be a perfect time to lock in some rates for longer.

When you start investing for income instead of prices, you begin to see your savings as an income producing vehicle. That’s investing. Let the prices be reflected over time in good business decisions and investment decisions.

Action Line: There’s plenty of places to hide today. When you’re ready to talk, let’s talk.

Originally posted on Your Survival Guy