Is history a reliable guide? Let me tell you a story. On our research trip to Paris, we spent time on the left bank staying at Hotel & Spa D’Aubusson. At the morning buffet, it could have been easy to go for the morning pastries but using a bit (I said a bit) of self-control, I opted for the soft-boiled egg. Simple. Easy.
The following week in Beaune, I did the same, but when I hit the shell, raw egg oozed all over my hands and onto the table. A fellow guest did the same, and later we learned you need to cook the eggs yourself. “The hot water is right there sir,” I was startled to learn. Duh. I’m still getting used to self-checkout at the grocery store. Lesson learned.
When something as simple as a soft-boiled egg throws you a curve, you see how even a simple task like setting interest rates becomes a problem. Not that setting interest rates should be hard. It should be simple. Set it and forget it. Rates shouldn’t be over or undercooked. But that’s too easy.
If you have a pile of cash: set it and forget it for three to five years. You’re not looking for the “perfect” when close enough will be just fine. For example, if you’re wondering if you should wait before deploying because “interest rates are going up,” remember how certain your nephew was last Thanksgiving about the stock market.
Action Line: Look at the yields below, and don’t beat yourself up about the timing. Get your money cookin’ and deal with the yields as they come. This doesn’t have to be messy. Let’s talk.
Originally posted on Your Survival Guy.