why dont put in bank west term deposit for 8.7% p.a
FYI, rabo is actualy 8.0%? term deposit in bankwest 12 month for 8.7% and 7 month for 8.5% Went to a seminar yesterday, some growth shop is still very bullish on commodity and resource stocks, what’s your take on that?
Speaking as a U.S. investor; I was thinking about commodities in context of portfolio…who cares if they have run up!?! When you are running 7% inflation, plus high inflation expectations (think crop failures, oil prices that haven’t passed down the chain), long bonds yield 4.7%, cash 2.5%, stocks trade at 18x earnings and are missing… what choice do you have? The government here is doing all sorts of inflationary things… sending checks to consumers, raising minimum wage, overspending, undertaxing, guaranteeing crap debt, bailouts, etc. Sticking some $$$ in commodity oriented biz doesn’t sound too bad… kind of like voting. I vote for commodities cuz everything else just sucks so bad (except for my stocks… I love my stocks).
Rabo is 8% until the 31st of July I belive, when it then reverts back to the standard rate: “Open a RaboPlus savings account * Earn our high promotional rate of 8.00% pa on call on balances up to $1 million * Available for new and existing customers until 31 July 2008 * Balances over $1 million will receive our standard on call rate, currently 7.30% pa * No fees, no minimum balance * The same high rate applies to businesses, trusts and DIY super funds * Interest calculated daily and paid monthly * No need to switch banks - keep your current bank account for your day to day banking” You could go a Term Deposit, but the Rabobank account gives you next-day access to your cash, which is way better than a term deposit Jeez I sound like a Rabobank salesman - mention my name when you sign up! 
I’m at 92% equity / 4% fixed income / 4% cash earning ~ 3% I’m 22 and would argue that the state of the market won’t affect my portfolio’s balance 45 years from now…when I retire…yikes that’s a long time… better make it 5% power ball
I would be at 90%+ equities right now too except my asset base is way too large which would result in big absolute dollar swings in my net worth. I’m still accustomed to feeling pain from losing a thousand bucks here and there from when I was in my early 20’s, even though my net worth is exponentially higher now. Plus I’m saving up to buy a house in the NYC suburbs which is not cheap.
Man over 7 % on Rabo, what is the catch, I’m earning my 3 at ING… I imagine it is variable and once they get all the accts rate will go down.
s23dino, where are you at? These rates are all Australia rates. Though it probably won’t hurt you to get into some US carry trade! The Aussie is appreciating with no end in sight! ING direct in Australia pays 6.9%. (current bonus rate is 8%)
40% Equities 40% Money Market 10% Bonds 10% Cash I am thinking about allocating more to equities again… Oh, and most in EUR, but PPP indicates to switch to USD, thinking about that too…
20% cash / st FI, 60% equity, 20% alternatives over allocated to financials, but too late to get out of those positions…gonna let it ride.
Syd_RE Wrote: ------------------------------------------------------- > s23dino, > > where are you at? These rates are all Australia > rates. > > Though it probably won’t hurt you to get into some > US carry trade! > The Aussie is appreciating with no end in sight! > > ING direct in Australia pays 6.9%. (current bonus > rate is 8%) I’m in the states and I’m getting killed. Probably 85% in equties my international’s are doing the worst…Last couple weeks europe has taken a beating. My alternatives doing the best, but I was going to put some money in commodoties about 3-5 months ago but I said man they are way too expensive…not a good call. But then again I have a 30+ yr time horizon for most of this stuff.
Over the past week, I’ve bought or added to positions in leveraged loan funds, triple-tax exempt muni funds, an asset allocation fund, and an MLP fund. Also bought some puts on some ETFs today to hedge my single-name stock exposure after the big market run-up. Overall still sitting on about 40% cash.