The Best Investment?

[meow_meow]

There are two unique things about property, one I like, the other not so much.
1) They aren't making any more of it. Supply is fixed, demand is going to increase as long as population does. What other investment can you say that about?
2) It is so damn illiquid, unless of course you are going the REIT route, and I think those have had their day.

[cwsiggy]

I was just about to say bonds would be horrible to buy if inflation goes up - but two people said it already. Unless you are doing some kind of wacky spread trade - short the long end of the curve , go long the short end of the curve.

yes - real estate - one of the only investments where the supply is fixed. And the leverage!!!!!!!

[BubbleBoy]

Ray,

Ice was talking about I-bonds. These are inflation protected bonds. Don't know all the nitty gritty about them, but they are U.S. Treasuries whose rates are adjusted every 6 months or 1 year (or some other relatively short time period) according to an inflation adjustment measurement. Thus, inflation theoretically should not hurt these bonds since the coupons are adjusted with inflation.

PIMCO has been a big buyer of these bonds now since Gross thinks the deficits are going to crush the dollar and create inflation. They have not been a great investment over the last several years since "inflation" has been benign.

[Ray Zee]

i think i would rather have my money in a momey market fund during rising rates . but i may be wrong on this so can anyone do a comparision between the two during rising rates and give a general strategy.