Since I don't watch live TV any longer (sorry, Madison Avenue, I haven't watch a commercial in over 6 years), I was watching the back episodes of some of the talking heads and I am almost laughing myself into a coma. Everyone on Monday were saying: "Yea, the bull is back," "here we go!" "get on board!"
Then we have Bill O'Reilly saying he was going to put some money back into the market after the big rally and then I can't wait to see what he says on Tuesday and Wednesday. ;-) What a dupe! That's the problem with most rich people: long on dollars (good for him), but short on intelligence when it comes to investing.
When you already have money, the first rule of thumb to stay wealthy is:
"Protect the piggy bank!"
Bill, a multi-millionaire, should have been holding high interest rate bonds so that when the interest rates went down, his bonds would have exploded in value. Remember, bond values are inversely proportional to interest rates. If you have high interest rate bonds, and interest rates go down, your bonds are worth more.
When interest rates bottomed out at 1%, Bill should have sold every bond he owned and put his money into high interest rate foreign bonds since the dollar's fall would have helped him and the rising interest rates would have eroded his bond value.
Oh well, Bill, I am sure you are going to swearing tonight if the Presidential Debate didn't pre-empt you.
It's really funny how many people go "buy", "sell", "buy", "sell", "die!" ;-)
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