Showing posts with label leveraged investment. Show all posts
Showing posts with label leveraged investment. Show all posts

Tuesday, March 11, 2008

Why safe investments aren't

Michael Panzner's latest explains a point I've learned and repeated here before: "refuge" investments like gold are not as safe and predictable as you might assume. Borrowing money to invest boosts prices, and then when credit becomes tight, forced sales can deflate prices just as rapidly. We're all in a bouncy castle, like it or not.