When cautious-looking investments are the riskiest option
When can a famine taste pretty good? The answer is when you are eating the cattle which have just died of thirst. And that’s where we are today in the investment market. The famine is a lack of income — cash held in a completely safe bank, or in short-term government securities, earns almost nothing. Where’s the feast? The answer is in yield-bearing investments, into which savings are pouring — they produce a modicum of yield, to be sure — but that is dwarfed by the capital gains which have accompanied them. Those who have already made this switch are understandably rather pleased, and often rather pleased with themselves.