2. Corporate bonds are free money for stocks
Additionally, with interest rates so low, you’d be silly not to borrow cash if you’re a company in good standing. Take Google GOOG +0.25% , which floated its first ever bond offering for $3 billion a month or so ago. Why take on debt despite an already huge cash pile? Well, because investors snapped up three-year notes from the tech giant at a measly 1.25% rate.
This “debt” may actually wind up making Google money if the rate of inflation stays high. It really is free money — money Google will presumably use to grow.
3. ‘High-yield’ savings accounts aren’t
Speaking of low interest rates, so-called “high yield” savings accounts are in the ballpark of a 1.2% annual rate right now. Not what I’d call high-yield at all. The best one-year CD rates this week top out at around 1.3% and a five-year CD won’t get you much better than 2.4% annually. |
发表于 2011-6-16 23:57
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