08-10-2021, 01:37 PM
(This post was last modified: 08-10-2021, 01:37 PM by ken-do-nim.)
(08-10-2021, 10:29 AM)fenders53 Wrote: Somewhat off topic but this zero interest rate thing is a double edged sword. It's probably responsible for the last 10-20% gain in our equity holdings. Imagine yourself a 70yr old retired woman. Your spouse just passed away and you have your SS, maybe half his pension, and that $100K you had in a CD that gave you a few hundred extra a month now gives you $20. It forces risk taking if you even know how to do it. You can buy the SPY at clearly high historical valuations just to get back half your former CD yield.
Excellent point. I really, really wanted to put my Emergency Fund into a CD Ladder* because they are so cool, but alas the interest rates just make it not worth it.
* If you don't know what a CD Ladder is, it is when presumably the longer the CD term, the better the rates are, and you put 1/5th of your money into a 1 year CD, 1/5th into a 2 year, 1/5th into a 3 year, 1/5th into a 4 year, and the remaining 1/5th into a 5 year. One year later, the 1 year CD comes due. If you need the money, great, it's there for you. If you don't, reinvest as a 5 year CD. Now every year, you have 1/5th of your money becoming available should you need it, but all of your money is eventually locked into the 5 year best rates.
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On the biotech front, I have to admit I made a terrible mistake in selling LLY earlier this year, and I need to reacquire it asap. They have the only treatment for Alzheimer's Disease available, and the market is huge. It has already started to get very high, but I think there is tons of room to grow. And unlike Moderna, Eli Lilly is a DGI stock
