A.I.M. Users Bulletin Board

[ls7550]

The NASDAQ 100 is my risk-on go-to

Also consider what you consider to be 'cash'.

Depository system banks - has the money you deposit become the banks money, free within regulation to do with whatever they like. A often low cost loan by you to them.

Treasuries are also you lending to someone who can direct inflation (print/spend money to devalue all other notes in circulation), change interest rates, change taxation rates. Pretty lousy terms and conditions for the lender (you). Fiat money - backed by nothing, is just a number. Former commodity non-fiat currency used to be backed by gold.

The tendency under a fiat currency system is to only see inflation, at a 2% typical targeted rate, i.e. devaluation of money (decline of purchase power).

Personally I prefer a custodial style banking system. Where what you deposit remains yours. Deposit share certificates and gold for instance. Typical terms of such 'deposits' is a three day notice period (T+3), so not instant access, but not too inconvenient.

Over time such deposits tend to see the value increase relative to consumer goods/services, for 50/50 small cap value stocks and gold for instance at a historic rate of 6.8% lower consumer prices/year.



Much better than what typical/regular depository banks tend to pay lenders, that might after taxes not even maintain consumer prices purchase power.

PV example

Clive