Investment consideration 4th July 2019

This article is opinion-based rather than evidence-based. I apologize for that.

Gold is no longer the best player.

Although I had been saying or writing that Gold was the best option to invest in, it appears to be no longer the most beneficial option because it does not yield any interest, and it went too high. Some people would buy at the current price because the trend seems upward, but that is not my style.

How about the stock market

Likewise, the stock market also seems risky to invest in because the economy does not look great, but Dow Jones Industrial Average has reached its All-Time High. That means the economy is either growing with stability or in a bubble. I want to emphasize here that the current economic situation is unsure.

Inflation is likely.

However, one thing for sure is that there would likely be inflation sooner or later caused by monetary easing, which the central banks of mainly Japan and the EU have been doing and are willing to continue. This has been partly also why Gold was a great investment option.

In this situation, the theoretically best option I can consider would be Inflation-linked bonds of the Japanese government or Treasury inflation-protected securities (TIPS).

 I wrote about the Japanese government bond’s superiority in the current situation here. "I just realized the potential of JapaneseGovernment Bond in this economically depressed situation", and what if Japanese Government Bonds have inflation proof. Yes, there are Inflation-linked bonds for you.