Aug 27

Are there any safe investments today? 7

US Treasury Bonds

Treasuries, as they are called, are a very safe investment – but safe only at protecting the original principal. In the long run, with any significant inflation, most recent Treasury issues, with their paltry rates of return, will be big money losers.

In the short-term, with extreme volatility in the markets, US Treasuries make an excellent hedge against both equities (long or short) and real estate (discussed below). Treasuries will maintain there value and are backed by the US government, which is critical in this uncertain time.

As the short term problems in financial markets subside, the rewards from Treasuries are far too small to protect against the risk of significant inflation.

In the next section, we will look at real estate.

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