During the financial crisis, what is the safest investment today?
The answer is probably the Treasury bill(T-bill). This investment instrument is backed by the government. As long as the government remains alive, your T-bill will be paid back with a interest. If the country goes bankrupted, like Iceland, the T-bill will probably be worthless. Recently, a T-bill pays you 1.x% of interest.
The next safest product maybe is the savings bond at 2.x%. A corporate bond usually pays out about 3.x%. A corporate bond has more risk than a Treasury bill. A friend told me that there is an instrument that can get him a 14% annual interest. Though I don’t know what the actual investment is, I am sure this kind of return should be associated with extraordinarily high risk based on the risk/return ratio. So I advice him avoid such kind of investment because we are in a time that cash is the King, or perserve your capital and wait for the right time to invest.
So let’s wait and see…