Don't Chase Yield Off A Cliff

in steemleo •  19 days ago 

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It is tempting to chase yield in low-interest environments, but take it from me, you are risking capital loss if you do ai recklessly and constantly.

The U.S. Treasury yield is low, and European bank and treasury yields are commonly seen with negative interest rates. How does ons make their nest egg last in such a hostile environment for fixed-income investors?

Simply put, investors are clamoring for even more return on investment as world stock markets decline.

Do not chase yield on high-risk junk bonds, stocks with small market capitalization and a recent decline, CEFs with inverse relations with the stock market or other such financial products.

The FED has cut rates low and it has benefitted corporations who can borrow cash cheap to buy back their stock.

Pay off all your debt, save in your emergency fund, save for your children and buy cryptocurrency while it is low.

Picture from Pixabay.

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Wise words! I am using different platforms like some of the DeFi projects like compound finance as well as things like crypto.com and blockfi to earn interest on my crypto. Other than the occasional trades and my stock from my job, I am pretty much out of traditional markets for a while. Cryptos and metals for me for a while.

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