Advice on investment strategy.

November 3, 2004 3:30 PM

Investment Question: Broadly speaking, if somebody believes that interest rates are likely to substantially increase in the near to mid-term, what would be the best investment strategy?
posted by willnot to Work & Money (3 answers total)

i'm no expert, but doesn't that mean that putting money in a bank and earning interest makes more sense? you don't want to be borrowing money, so don't buy a house on a mortgage. or, at least, you only want to borrow in the short term. try to pay off your loans. more generally, it might mean slower growth, a weaker economy, fewer jobs, but lower inflation.
posted by andrew cooke at 3:47 PM on November 3, 2004

When interest rates go up, stocks usually go down. When people can make good money via a savings account, why take the gamble on the maket. Knowing this. You could short stocks hoping they'd go down and make some money. I've never shorted a stock. Maybe someone here could tell us more about that, but if everything worked out you'd make some dough.

pwb.
posted by pwb503 at 7:08 PM on November 3, 2004

You could invest in blue-chip Euro stock. Some industries are simply going to be around in the next few decades while the shit hits the fan over here. If you want to stay local, I'm sure the booze and entertainment industry will see some jumps. People gotta have their bread and circuses.

Don't buy any real estate. Especially don't buy any real estate in Florida.
posted by Civil_Disobedient at 7:56 PM on November 3, 2004