Call out all investment GURU: What to invest if...

IHAVEAQUESTION

Golden Member
Nov 30, 2005
1,061
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risk-free interest rate increases? I know this is an unlikely situation given the economic condition right now. But if it happens, what would you invest and why?
 

IHAVEAQUESTION

Golden Member
Nov 30, 2005
1,061
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I thought CD are for low risk investment. Let's say I want to really profit from higher interest rate...what are some the riskier (still wise) investment I can make?
 

TheoPetro

Banned
Nov 30, 2004
3,499
1
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Invest in an education and take Micro/Macro econ, Finance 101, and investing. Then you dont have to ask a "tech" oriented board what to invest in. Sounds like a homework question to me.
 

Miramonti

Lifer
Aug 26, 2000
28,653
100
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Originally posted by: IHAVEAQUESTION
I thought CD are for low risk investment. Let's say I want to really profit from higher interest rate...what are some the riskier (still wise) investment I can make?

Riskier means the principle will be at risk. How much principle do you want to risk? Its all about risk/reward...if you don't put the principle at risk its hard to find something that reward you if the interest rates goes in your favor, but don't penalize you when it goes in the opposite direction.

That said, I'm not much in tune with all that's available for betting on interest rates other than bonds and risky bond options.
 

everman

Lifer
Nov 5, 2002
11,288
1
0
Originally posted by: IHAVEAQUESTION
I thought CD are for low risk investment. Let's say I want to really profit from higher interest rate...what are some the riskier (still wise) investment I can make?

You can always gamble by using options. You will make a bet that rates will go up to a certain amount, if they do then you win, or else you lose.
 

Epic Fail

Diamond Member
May 10, 2005
6,252
2
0
Originally posted by: IHAVEAQUESTION
I thought CD are for low risk investment. Let's say I want to really profit from higher interest rate...what are some the riskier (still wise) investment I can make?

Subprime mortgage.