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Best fixed income investment: certificate of deposits, time deposit, or what?

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  1. #1

    Join Date
    Oct 2018
    Posts
    487

    Best fixed income investment: certificate of deposits, time deposit, or what?

    Greetings, there is a lot of discussion about an impending recession, and since central banks already have very low discount rates, I wonder if it might not last for a while. Some people say we are entering a deflationary period, like Japan in the 1990s, so the recession might last for 20 years.

    What are the best investment, for capital preservation, and if possible a small capital increase? Time deposits, bonds, certificate of deposits, any other?

    The price of bonds has increased, and high quality bond etfs now pay about the same as time deposits. Would certificate of deposits pay more than time deposits? From what I can find they also pay very little. Any other asset class I could look at?


  2. #2

    g-o-l-d


  3. #3

    Join Date
    Jul 2011
    Posts
    1,015

    Try a few of these high dividend stocks: do you think casino play in Macau will stop if recession?

    https://www.kiplinger.com/slideshow/...tch/index.html


  4. #4
    Quote Originally Posted by jobin:
    Try a few of these high dividend stocks: do you think casino play in Macau will stop if recession?

    https://www.kiplinger.com/slideshow/...tch/index.html
    Just about anything can slow down in a recession but sin stocks and utilities have historically been okay places to hide out and earn some income when the music stops.

    Not sure if I would want to have a portfolio full of the stocks in the Kiplinger article if /when the next recession rolls round, but thanks for posting the link.

  5. #5
    Original Post Deleted
    Over the short term, absolutely but unless we slip into a deflationary situation, inflation (and cockroaches) will eat away at the real value of your savings over time if you leave too much of it in cash.