Warum gibt es etwas und nicht nichts? (Why is there something rather than nothing?) - Leibniz
Tuesday, March 11, 2008
Why safe investments aren't
Michael Panzner's latest explains a point I've learned and repeated here before: "refuge" investments like gold are not as safe and predictable as you might assume. Borrowing money to invest boosts prices, and then when credit becomes tight, forced sales can deflate prices just as rapidly. We're all in a bouncy castle, like it or not.