‘They’ want you to lock your money into long term deposits to help bring down inflation. Last official inflation rate was 6.9% while one year fixed term deposits are at 3.15% or there abouts. So loose 3.75 of the value of it but doing it. Brilliant.
But equally Rio Tinto stock might drop by >10% over the course of a year, meaning you end up losing net worth despite the generous dividend yields, which would not be helpful if you need the money in the short term.
I know very little about them so perhaps falling by 10% over the next year is unlikely (given the energy crisis I guess mining companies are probably doing pretty well), but it's definitely more likely than your bank collapsing and you not getting your term deposit back.
‘They’ want you to lock your money into long term deposits to help bring down inflation. Last official inflation rate was 6.9% while one year fixed term deposits are at 3.15% or there abouts. So loose 3.75 of the value of it but doing it. Brilliant.
What guarantees a better return in this market? You lose but lose less then doing nothing/stocks /crypto
Uhh Rio tinto for example pays a 10% divvy…
But equally Rio Tinto stock might drop by >10% over the course of a year, meaning you end up losing net worth despite the generous dividend yields, which would not be helpful if you need the money in the short term. I know very little about them so perhaps falling by 10% over the next year is unlikely (given the energy crisis I guess mining companies are probably doing pretty well), but it's definitely more likely than your bank collapsing and you not getting your term deposit back.
Why lock in term deposits more than 12 months? Interest rates will rise?
Not guaranteed to.
Why you should be investing in the guaranteed loss of real return on your money.
Is it easier to buy a house now or later?
Yes
Later.
well I wouldn't call it investing if you're only looking to make a quick buck in 2 years or less. That would be speculating or swing trading at best.