Smart Things To Do When The Yield Curve is Inverted
April 10, 2011 3 Comments
2.Newly issued bonds tend to have higher coupon rates or deeper discounts.Now might be a good time to add some to your portfolio.
3.Older long term bonds you might have been coveting for a while might be available cheaper or at deeper discounts now.Maybe you should buy some now.
4.Stock markets might not be so buoyant now so investing short-term funds in bank term deposits which are offering equity like returns is a good idea.
5.Good stocks that you plan on holding for the long-term might be available cheaper.Why not buy them now?
6.Tax-saving FDs are likely to be very good options now.Do the math to check your pre-tax returns to see just how good they are.
7.Fixed Maturity Plans (FMPs) are good tax-efficient alternatives to FDs.They are very common at times like these especially in the last quarter of the year.
8.Now might be a good time to start Systematic Investment Plans (SIP)s in your favourite equity Mutual Funds (MFs .The Net Asset Values (NAVs) are likely to be lower allowing you to buy more units.
9.Consider making bulk investments in your retirement accounts now.Again the NAVs are likely to be lower.
10.Uncertainity in times like this might be heating up the bullion market,providing many trading opportunities.Why not take advantage of them?
11.Foreign exchange might become cheaper,making it a good time to invest in foreign currency denominated assets.
12.Open a recurring deposit(RD)account and take advantage of the high interest rates.Kick-start your savings plan.