T-Bills however seems to be going negative at the moment:
Cash in Sweden
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lordmetroid
- Executive Member
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Cash in Sweden
I found out that Öhman penningmarkandsfond placement is soley in Swedish T-bills.
T-Bills however seems to be going negative at the moment:
T-Bills however seems to be going negative at the moment:
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AnotherSwede
- Senior Member
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Re: Cash in Sweden
.1% fee and -.1% return.
A little courtage(?) and some interest rate change.
I have a hard time reconciling having a mortgage and at the same time investing a quarter each in negative nominal yielding cash, zero nominal yielding bonds and zero real return gold.
A little courtage(?) and some interest rate change.
I have a hard time reconciling having a mortgage and at the same time investing a quarter each in negative nominal yielding cash, zero nominal yielding bonds and zero real return gold.
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lordmetroid
- Executive Member
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- Joined: Wed Nov 26, 2014 3:53 pm
Re: Cash in Sweden
One does not chase yield with ones cash.
Cash is suppose to be available in times of dire needs that is why you invest in Treasury Bills. Even though you can get greater return from mortgage bonds or corporate bonds, when the mortgage bubble pops or recession hits and corporations goes bankrupt in droves resulting in defaults left and right. The state with its power of taxation and printing presses can always some way or the other pay up. Which means you have cash when no one else have it and the demand for cash is at its peak and people starts selling other assets such as stocks, real estate, gold or whatever they have so they can get their hands on some of that very valuable cash.
Hence why I bought this fund even though it has negative returns at the moment. Though the negative return is so minuscule I would rather call it zero return in practice.
Cash is suppose to be available in times of dire needs that is why you invest in Treasury Bills. Even though you can get greater return from mortgage bonds or corporate bonds, when the mortgage bubble pops or recession hits and corporations goes bankrupt in droves resulting in defaults left and right. The state with its power of taxation and printing presses can always some way or the other pay up. Which means you have cash when no one else have it and the demand for cash is at its peak and people starts selling other assets such as stocks, real estate, gold or whatever they have so they can get their hands on some of that very valuable cash.
Hence why I bought this fund even though it has negative returns at the moment. Though the negative return is so minuscule I would rather call it zero return in practice.
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AnotherSwede
- Senior Member
- Posts: 117
- Joined: Mon May 11, 2015 10:24 pm
Re: Cash in Sweden
Oh, sorry for my bad americanish.lordmetroid wrote: One does not chase yield with ones cash.
Cash is suppose to be available in times of dire needs that is why you invest in Treasury Bills. Even though you can get greater return from mortgage bonds or corporate bonds, when the mortgage bubble pops or recession hits and corporations goes bankrupt in droves resulting in defaults left and right.
I have a mortgage on my home, roughly twice the amount of my non-retirement-account-savings. Thus currently gambling my desert portfolio will outperform the adjustable interest rate.
Having a too expensive home (ie having a mortgage) and saving in mortgage bonds in the middle of a real estate bubble seems retarded.
Did I mention I have some mortgage bonds? I'm exiting those.