Archive for the ‘Savings’ Category

1/26/09: Gates, the Poor and Caterpillar

Bill Gates says that the rich of this world must help the poor. Didn’t someone else say that once?

Caterpillar[[cat]] is the latest big company to take a hit from our shrinking economy. 20,000 jobs, or 18% of it’s worldwide workforce is being layed off due to shrinking profits.

Ford[[f]] still says it doesn’t need government cash to keep going. Good for them, but for how long? It’s a long way to an economic recovery. Who’s buying new cars right now?

Countrywide has a 7 month CD at 2.10%. It’s 10,000 min. though.

Gold Hits Low

Is gold a good investment these days? Some would argue that gold at a 13 month low, currently $744 an ounce, is a steal right now. Gold is often thought of as a hedge against a bad economy and turmoil in the world. Where as stocks of companies can go from $100 a share to pennies in a day, gold rarely shows that kind of fluctuation. Others can argue that gold is also a physical piece of property. Buy some gold coins and put them away safely and you will always have them. If a company goes belly up, you have a worthless piece of paper.

The drawback is that gold, unlike stocks with yields and money market funds, doesn’t gather interest. It sits there, not unlike any other piece of metal. And even though the bottom is surely dropping out of the market right now, stocks do perform better over the long run. My advice? If you’re in the market for the long term, there are great deals on stocks right now and you should be buying good companies. If you are on a fixed income and need your money now? Take a look at gold.