Big Dog Investments wrote:
agip wrote:well that's not really fair, is it? we jsut had a flukish 50% drop in oil, which brought inflation down to much lower levels than it has been.
And the poster is talking about CDs and savings, not long term bonds. those are different animals.
No doubt the price of oil has contributed to that, but it is a 12-month figure. And the talk mentioned "safe ireturns" which certainly includes Treasury bonds. The short term ones are at slightly under a 2% yield. So, I think it's fair.
No, 10-year Treasury bonds, which can easily lose a large fraction of their value with a rise in interest rates, certainly should NOT be included in any rational discussion of where one can get "safe returns".
Investing in vehicles in which one can easily lose one's shirt is generally not considered a safe strategy.
Glad I could point that our for you.