In an great article on CNN Money, US treasuries are shown as not always being a safe investment. Reason? Because interest rates can go up. In short, interest rates rising will have a serious effect on an investors return on money.
As stated in the article “I hope that you now get the larger point: that you’re putting your capital at serious risk if you make a long-term loan to the safest borrower in the world, the U.S. government. Sure, getting your interest and principal from Uncle Sam is guaranteed. But that doesn’t mean that you’re making a safe investment. Be warned.”
The complete article can be found here:
Once again, FIA’s show up as the best option for safe money!!
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