Smart Things To Do When The Yield Curve is Inverted
April 10, 2011 3 Comments
1. Banks normally come up with special term deposits with high interest rates.Now is a great time to book some fixed deposits.
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. Read more of this post