No. of Recommendations: 3
mjcalab; What if rate 18 months from now is 7%??

First thing that comes to mind is that I would be very depressed because I would have very large losses in the stock market. But that's probably not what you are asking.

I'm under the impression that future interest rates cannot be predicted. So I feel ok with the highest rate at the lowest risk when I have funds to invest. If rates continue to go up as you indicate, I will calculate, along the way, the point at which I would be better off selling, taking into account the early withdrawal penalty, If there are good value stocks at low P/E and their dividends are close to the CD rates then I would probably buy stocks, otherwise I would look for the highest yielding lowest risk fixed investment.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.