I have access to CDs that very nearly cover inflation in the USA (inflation is very low right now). I don't use them for several reasons:frugal wrote: For me it is a bit strange how someone can INVEST almost ALL his savings in a PP.
I am so used to CD's that covers the inflation. On your countries, as your CD's don't cover INFLATION, you had to discover another strategies earlier...
Please advice.
Thanks
1. I don't want to match or just barely beat inflation; I want to beat it by 3-7%. CDs can't do that.
2. CDs are illiquid.
3. CDs are promises from commercial banks. I don't trust them as far as I can throw them.
Avoiding CDs gives you a better return, more safety, and more liquidity. That nice 4% CD return won't mean a thing if the Portuguese economy falls into a banking crisis and the firms holding your CDs collapse.