Investors tend to respond to impending doom by selling risky stuff and hiding out in safer assets -- namely, bonds in places such as Germany and the U.S.
There’s a problem with that formula this time around: Traders aren’t so sure they can find anything that’s truly safe right now. So, instead of piling into sovereign debt of developed nations, traders are pulling their money out of those places as the Greek economy teeters on the brink of collapse, Puerto Rico talks about delaying some debt payments and China’s stock market suffers its biggest selloff since 1992.
Investors yanked $2.9 billion from European government bond funds last week, more than ever before, and pulled $699 million from short-term investment-grade U.S. bond funds, Bank of America Corp. and Wells Fargo & Co. data show. While these assets have traditionally been havens during rocky periods, they look less appealing now after more than six years of unprecedented monetary stimulus that pushed yields to record lows.
WNU Editor: There is always risk when it comes to how protecting/investing your money .... but I have never seen the world's financial situation as it is today .... and I have lived through my fair share of financial crashes/crisis/and collapses.
Everyone should have at least 5% of their net worth in precious metals,that are within arms reach.
ReplyDeleteSD boxes have counter party risk.
Gold in hand sounds about as safe as you could get.