Charles Schwab??

[Raybyrnes]

J
I think you are wrong on this. Annuities are unfortunately marrketed to everyone but ideal for a few.
I would think if someone asked about annuities there is a check list of questions to explore before making any type of recommendation.

When you immediately exclude products it show a very limited understanding of the uses of the products. This means that your client can sometimes miss out.

If I didn’t understand a product a more accurate response might be that due to the amount of moving parts and the complicated nature of the product I don’t recommend them to my clients.

[stockstradr]

vkailas writes:

I believe that this is an actually an extremely good time to invest in the US stock market through an index fund.

stockstradr writes:

I agree completely with that sentiment. You’ve got an original poster who, after the markets have fallen 20% (since Oct ’07) wants a “safe” place to park their money to ride out the storm.

What?

(I’ll assume for the moment that the original poster is not approaching retirement, so can handle some risk beyond simply buying CD’s.)

Now stocks are on a 20% off sale. I think the vkailas’ suggestion is a good one that this is EXACTLY the market situation where dollar cost averaging (continuing to buying stocks) can really pay off.

However, don’t conclude my comments above imply I agree with everything else that vkailas wrote in the post, or the others. I totally disagree with his views on the long-term strength of the US economy. Also, as for me personally throwing the darts and guessing the turn of the market, I think US stocks are at least 10% away from the bottom.

As for CD’s at those rates mentioned in this thread? I personally would NEVER buy such an investment product that is obviously paying much lower rates, relative to current inflation. That’s a strategy for watching the vale of your money DECLINE, in real terms.

[stockstradr]

vkailas writes:

I believe that this is an actually an extremely good time to invest in the US stock market through an index fund.

stockstradr writes:

I agree completely with that sentiment. You’ve got an original poster who, after the markets have fallen 20% (since Oct ’07) wants a “safe” place to park their money to ride out the storm.

What?

(I’ll assume for the moment that the original poster is not approaching retirement, so can handle some risk beyond simply buying CD’s.)

Now stocks are on a 20% off sale. I think the vkailas’ suggestion is a good one that this is EXACTLY the market situation where dollar cost averaging (continuing to buying stocks) can really pay off.

However, don’t conclude my comments above imply I agree with everything else that vkailas wrote in the post, or the others. I totally disagree with his views on the long-term strength of the US economy. Also, as for me personally throwing the darts and guessing the turn of the market, I think US stocks are at least 10% away from the bottom.

As for CD’s at those rates mentioned in this thread? I personally would NEVER buy such an investment product that is obviously paying much lower rates, relative to current inflation. That’s a strategy for watching the vale of your money DECLINE, in real terms.

[stockstradr]

vkailas writes:

I believe that this is an actually an extremely good time to invest in the US stock market through an index fund.

stockstradr writes:

I agree completely with that sentiment. You’ve got an original poster who, after the markets have fallen 20% (since Oct ’07) wants a “safe” place to park their money to ride out the storm.

What?

(I’ll assume for the moment that the original poster is not approaching retirement, so can handle some risk beyond simply buying CD’s.)

Now stocks are on a 20% off sale. I think the vkailas’ suggestion is a good one that this is EXACTLY the market situation where dollar cost averaging (continuing to buying stocks) can really pay off.

However, don’t conclude my comments above imply I agree with everything else that vkailas wrote in the post, or the others. I totally disagree with his views on the long-term strength of the US economy. Also, as for me personally throwing the darts and guessing the turn of the market, I think US stocks are at least 10% away from the bottom.

As for CD’s at those rates mentioned in this thread? I personally would NEVER buy such an investment product that is obviously paying much lower rates, relative to current inflation. That’s a strategy for watching the vale of your money DECLINE, in real terms.

[stockstradr]

vkailas writes:

I believe that this is an actually an extremely good time to invest in the US stock market through an index fund.

stockstradr writes:

I agree completely with that sentiment. You’ve got an original poster who, after the markets have fallen 20% (since Oct ’07) wants a “safe” place to park their money to ride out the storm.

What?

(I’ll assume for the moment that the original poster is not approaching retirement, so can handle some risk beyond simply buying CD’s.)

Now stocks are on a 20% off sale. I think the vkailas’ suggestion is a good one that this is EXACTLY the market situation where dollar cost averaging (continuing to buying stocks) can really pay off.

However, don’t conclude my comments above imply I agree with everything else that vkailas wrote in the post, or the others. I totally disagree with his views on the long-term strength of the US economy. Also, as for me personally throwing the darts and guessing the turn of the market, I think US stocks are at least 10% away from the bottom.

As for CD’s at those rates mentioned in this thread? I personally would NEVER buy such an investment product that is obviously paying much lower rates, relative to current inflation. That’s a strategy for watching the vale of your money DECLINE, in real terms.

[stockstradr]

vkailas writes:

I believe that this is an actually an extremely good time to invest in the US stock market through an index fund.

stockstradr writes:

I agree completely with that sentiment. You’ve got an original poster who, after the markets have fallen 20% (since Oct ’07) wants a “safe” place to park their money to ride out the storm.

What?

(I’ll assume for the moment that the original poster is not approaching retirement, so can handle some risk beyond simply buying CD’s.)

Now stocks are on a 20% off sale. I think the vkailas’ suggestion is a good one that this is EXACTLY the market situation where dollar cost averaging (continuing to buying stocks) can really pay off.

However, don’t conclude my comments above imply I agree with everything else that vkailas wrote in the post, or the others. I totally disagree with his views on the long-term strength of the US economy. Also, as for me personally throwing the darts and guessing the turn of the market, I think US stocks are at least 10% away from the bottom.

As for CD’s at those rates mentioned in this thread? I personally would NEVER buy such an investment product that is obviously paying much lower rates, relative to current inflation. That’s a strategy for watching the vale of your money DECLINE, in real terms.

[stockstradr]

I have one more comment:

vkailas quoted:

“there is no fundamental advantage to borrowing or lending in one currency over another.”

My reponse:
If you really believe THAT, then I’m now starting to completely lose respect for you.

What do you think George Soros would reply to your quote, a man who proved that quote wrong and also made BILLIONS for himself and his hedge fund investors in the currency markets.

My wife and I bought an investment property in China because we not only wanted our money out of dollars and into RMB, we also wanted some leverage which we got to the tune of 5X through a 20% down mortgage from a Chinese bank.

Since we did that a few years ago, the RMB to $ exchange rate has moved 20% in our favor, moving in the direction that anyone with any economic common sense knew it would. And it has much much farther to move. There IS advantage in many situations to borrowing in another currency, particularly when you are economically sharp enough to look at global economics and predict future monetary flows driving currency rates.

I know plenty of smart people who are buying CD’s in RMB from Chinese banks. Smart move. The rate is lower, but when combined with the RMB vs $ exchange rate moves, it works out well.

[stockstradr]

I have one more comment:

vkailas quoted:

“there is no fundamental advantage to borrowing or lending in one currency over another.”

My reponse:
If you really believe THAT, then I’m now starting to completely lose respect for you.

What do you think George Soros would reply to your quote, a man who proved that quote wrong and also made BILLIONS for himself and his hedge fund investors in the currency markets.

My wife and I bought an investment property in China because we not only wanted our money out of dollars and into RMB, we also wanted some leverage which we got to the tune of 5X through a 20% down mortgage from a Chinese bank.

Since we did that a few years ago, the RMB to $ exchange rate has moved 20% in our favor, moving in the direction that anyone with any economic common sense knew it would. And it has much much farther to move. There IS advantage in many situations to borrowing in another currency, particularly when you are economically sharp enough to look at global economics and predict future monetary flows driving currency rates.

I know plenty of smart people who are buying CD’s in RMB from Chinese banks. Smart move. The rate is lower, but when combined with the RMB vs $ exchange rate moves, it works out well.

[stockstradr]

I have one more comment:

vkailas quoted:

“there is no fundamental advantage to borrowing or lending in one currency over another.”

My reponse:
If you really believe THAT, then I’m now starting to completely lose respect for you.

What do you think George Soros would reply to your quote, a man who proved that quote wrong and also made BILLIONS for himself and his hedge fund investors in the currency markets.

My wife and I bought an investment property in China because we not only wanted our money out of dollars and into RMB, we also wanted some leverage which we got to the tune of 5X through a 20% down mortgage from a Chinese bank.

Since we did that a few years ago, the RMB to $ exchange rate has moved 20% in our favor, moving in the direction that anyone with any economic common sense knew it would. And it has much much farther to move. There IS advantage in many situations to borrowing in another currency, particularly when you are economically sharp enough to look at global economics and predict future monetary flows driving currency rates.

I know plenty of smart people who are buying CD’s in RMB from Chinese banks. Smart move. The rate is lower, but when combined with the RMB vs $ exchange rate moves, it works out well.

[stockstradr]

I have one more comment:

vkailas quoted:

“there is no fundamental advantage to borrowing or lending in one currency over another.”

My reponse:
If you really believe THAT, then I’m now starting to completely lose respect for you.

What do you think George Soros would reply to your quote, a man who proved that quote wrong and also made BILLIONS for himself and his hedge fund investors in the currency markets.

My wife and I bought an investment property in China because we not only wanted our money out of dollars and into RMB, we also wanted some leverage which we got to the tune of 5X through a 20% down mortgage from a Chinese bank.

Since we did that a few years ago, the RMB to $ exchange rate has moved 20% in our favor, moving in the direction that anyone with any economic common sense knew it would. And it has much much farther to move. There IS advantage in many situations to borrowing in another currency, particularly when you are economically sharp enough to look at global economics and predict future monetary flows driving currency rates.

I know plenty of smart people who are buying CD’s in RMB from Chinese banks. Smart move. The rate is lower, but when combined with the RMB vs $ exchange rate moves, it works out well.

[stockstradr]

I have one more comment:

vkailas quoted:

“there is no fundamental advantage to borrowing or lending in one currency over another.”

My reponse:
If you really believe THAT, then I’m now starting to completely lose respect for you.

What do you think George Soros would reply to your quote, a man who proved that quote wrong and also made BILLIONS for himself and his hedge fund investors in the currency markets.

My wife and I bought an investment property in China because we not only wanted our money out of dollars and into RMB, we also wanted some leverage which we got to the tune of 5X through a 20% down mortgage from a Chinese bank.

Since we did that a few years ago, the RMB to $ exchange rate has moved 20% in our favor, moving in the direction that anyone with any economic common sense knew it would. And it has much much farther to move. There IS advantage in many situations to borrowing in another currency, particularly when you are economically sharp enough to look at global economics and predict future monetary flows driving currency rates.

I know plenty of smart people who are buying CD’s in RMB from Chinese banks. Smart move. The rate is lower, but when combined with the RMB vs $ exchange rate moves, it works out well.

[Anonymous]

Nice call on investing in the RMB. I believe that political pressure is what allowed the RMS peg to the dollar to slide. That quote you took is from a text book so we can assume it of no real use 🙂 it’s completely theory, based on the assumption there is no arbitrage opportunities through buying a item cheap in one currency and selling in the other.

I have not myself invested in currency and am definately interested. I was just pointed out that often there IS a reason that some country is offering a high CD rate. Before investing, it is wise to find out if that particular reason puts you at a lot of risk, e.g. currency risk, risk of default, political risk or whatever. I agree that currencies can be very profitable. Some US companies I know did well by asking clients to pay in euros when they realized the dollar was too strong in comparison with trading partners currencies. A simple measure like Purchasing Price Parity showed that for a tourist, things had cost more in the US. eg the cost of a big mac in the US converted to a foreign currency was greater than the cost a of big mac in foreign country or Ef/us * Cus > Cf. You could have also measured that the currency was overvalued in terms of trade balance (would need to depreciate to eliminate trade deficit).

I have also heard people borrowing from countries with low interest rates and investing in other countries CDs. Stockstradr, do you know anything about this or how to find such opportunities when they arise? Also, anyone have any recommendation on good resources or books that are relavent.

[Anonymous]

Nice call on investing in the RMB. I believe that political pressure is what allowed the RMS peg to the dollar to slide. That quote you took is from a text book so we can assume it of no real use 🙂 it’s completely theory, based on the assumption there is no arbitrage opportunities through buying a item cheap in one currency and selling in the other.

I have not myself invested in currency and am definately interested. I was just pointed out that often there IS a reason that some country is offering a high CD rate. Before investing, it is wise to find out if that particular reason puts you at a lot of risk, e.g. currency risk, risk of default, political risk or whatever. I agree that currencies can be very profitable. Some US companies I know did well by asking clients to pay in euros when they realized the dollar was too strong in comparison with trading partners currencies. A simple measure like Purchasing Price Parity showed that for a tourist, things had cost more in the US. eg the cost of a big mac in the US converted to a foreign currency was greater than the cost a of big mac in foreign country or Ef/us * Cus > Cf. You could have also measured that the currency was overvalued in terms of trade balance (would need to depreciate to eliminate trade deficit).

I have also heard people borrowing from countries with low interest rates and investing in other countries CDs. Stockstradr, do you know anything about this or how to find such opportunities when they arise? Also, anyone have any recommendation on good resources or books that are relavent.

[Anonymous]

Nice call on investing in the RMB. I believe that political pressure is what allowed the RMS peg to the dollar to slide. That quote you took is from a text book so we can assume it of no real use 🙂 it’s completely theory, based on the assumption there is no arbitrage opportunities through buying a item cheap in one currency and selling in the other.

I have not myself invested in currency and am definately interested. I was just pointed out that often there IS a reason that some country is offering a high CD rate. Before investing, it is wise to find out if that particular reason puts you at a lot of risk, e.g. currency risk, risk of default, political risk or whatever. I agree that currencies can be very profitable. Some US companies I know did well by asking clients to pay in euros when they realized the dollar was too strong in comparison with trading partners currencies. A simple measure like Purchasing Price Parity showed that for a tourist, things had cost more in the US. eg the cost of a big mac in the US converted to a foreign currency was greater than the cost a of big mac in foreign country or Ef/us * Cus > Cf. You could have also measured that the currency was overvalued in terms of trade balance (would need to depreciate to eliminate trade deficit).

I have also heard people borrowing from countries with low interest rates and investing in other countries CDs. Stockstradr, do you know anything about this or how to find such opportunities when they arise? Also, anyone have any recommendation on good resources or books that are relavent.

[Anonymous]

Nice call on investing in the RMB. I believe that political pressure is what allowed the RMS peg to the dollar to slide. That quote you took is from a text book so we can assume it of no real use 🙂 it’s completely theory, based on the assumption there is no arbitrage opportunities through buying a item cheap in one currency and selling in the other.

I have not myself invested in currency and am definately interested. I was just pointed out that often there IS a reason that some country is offering a high CD rate. Before investing, it is wise to find out if that particular reason puts you at a lot of risk, e.g. currency risk, risk of default, political risk or whatever. I agree that currencies can be very profitable. Some US companies I know did well by asking clients to pay in euros when they realized the dollar was too strong in comparison with trading partners currencies. A simple measure like Purchasing Price Parity showed that for a tourist, things had cost more in the US. eg the cost of a big mac in the US converted to a foreign currency was greater than the cost a of big mac in foreign country or Ef/us * Cus > Cf. You could have also measured that the currency was overvalued in terms of trade balance (would need to depreciate to eliminate trade deficit).

I have also heard people borrowing from countries with low interest rates and investing in other countries CDs. Stockstradr, do you know anything about this or how to find such opportunities when they arise? Also, anyone have any recommendation on good resources or books that are relavent.

[Author]

Posts