Quote:
Originally Posted by jimbuna
A majority % of mine are and I can honestly say they are doing a lot better than anything I could achieve with fixed interest rates.
They also come with a guarantee of no loss of capital investment if you tie yourself into a 5 year term.
You want to see proof?.....PM me.
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Be careful. "Guarantees" of no-loss-safety only work as long as not too much damage haunt the system simulatenously. But if too much of the business collapses, the guarantee will not help you. It is an open secret that such inbuild "guarantees" on existing insurrances and fonds investements accumulate to a total number that are not backed by financial liquidity of banks and investement companies.
Sorry for my inadequate wording, but this needs a lot of business-English terms - and since I never was busy in business-English, I lack this kind of vocabulary, and risk to mix up those terms that I know.
What it comes dopwn to, is this: like a ship is assumed to not sink as long as not more than so and so much percent of its inspace gets flooded, guarantees like you referred to only will work as long as not too many bad things happen within too short time.
If it all should ever collapse, the only things of real value will be real property: land, gold, jewelry, maybe precious and rare collector's items like watches, wine; this kind of stuff.
The financial system itself I understand to be a snowball system. It only works as long as people will to invest even more into it. But there is no real option to get out - it is as if for everybody leaving, two new victims entering must be found, else collapse sooner or later is inevitable. It is impossible that this recipe could work forever.