I guess I should have put the old "this isn't financial advice" disclaimer at the beginning of my post....especially since the dollar has gone up everyday since my post about it heading down last thursday.....
I think it might have been you that once told me most economist are like a stopped watch....
Fun fact, I used to write copy at Agora/Stansberry, and worked on a couple Jim Rickards promotions. Dent, too.
Speaking of T_Bills, I just took a peek at my screen and the 6 month T_Bill is within whiff of 5% at 4.97. I just bought another good bit on Monday in the high 4.8's and will definitely play again this coming Monday at 5+. I was a bit early when I started but my larger layers start maturing next month. Who knows maybe I will get lucky and be able to roll them at 5+. Would be a nice problem to have :)
The 12 and 18 month are moving up against the 6.....is that a sure sign that inflation/rates will linger at least into the summertime?
It's interesting to think about stuff like that but at the same time frustrating because we don't know how the monetary system will change the course or at what speed. Some of you older f vckers would probably know when the first doses of QE were doled out. Was it before or after the dot com bubble?
Are you saying that Harry Browne's "Permanent Portfolio" might come back in fashion?!?!?!?! NO WAY!!!!
Ironically.....
No let's not get it started, LOL. I like these 100% risk free rates at these levels
. And if I was sitting on the mountain of cash I know you have I would like them even more.
Interesting thought of the day. I too like the risk free rates around 5% considering I have shaky faith in the stock market. I came to an interesting thought today regarding the rates and RE more specifically one of my rentals. I owe 73K on a house I have roughly 275k equity in. If I took the 73K out of my trading account(not retirement account) and paid the house off after taking out enough of the monthly rent to cover taxes and insurance I would get a 16.5% return on my money annually and pay myself back in 6 years and save 10k interest paid until what would be maturity on the 15 year mortgage(I have about 7 years left at current payment).No let's not get it started, LOL. I like these 100% risk free rates at these levels
Why is that a decision? I mean I understand the math, trust me, but the idea of an investment property is to get SOMEONE ELSE to pay for it. You have that as long as it is rented and it sounds like you are cash flow positive given the low interest rate. So you have some tax advantages by not paying it off, and though you may have already realized the greatest price appreciation, I doubt a property that price will decrease much if at all in the future? And if you decide to eventually do that, by rolling that money into short term Bills you can wait for maturity or if you needed the money you could also sell them.
Break even....don't ask. The longer I wait the less of the 10K in interest I'll capture too.....I'm not a big believer in leverage although I know it works out better for some people....Free and clear gives me a feeling of control I like. Also if rates shoot up really high it would drive down the price(equity) but would open the door to some creative owner financing at a high rate....Tax write offs with investment property....well they happen
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