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Contributed by mm | May 7, 2006 2:47 AM PST
The ultra-low inflation component in the latest semi-annual savings bond interest update is certainly disappointing, but it also created a good window to redeem your relatively new I-bonds without incurring a lot penalty. You don't want to redeem too early, though.
From Savings Bond Advisor:
My advice is to hold off on any rollovers until next October. I have two reasons.
The first is that since only bonds less than five years old are worth rolling over (the older ones all have base rates of 3.00% or more), you'll pay a penalty of your most recent three months interest when you redeem the I bonds you have now. You want that penalty to be three months of low interest, not three months of high interest.
...
The second reason is that interest rates may continue to rise. By October we should have some idea whether the base rate announced next November could be even higher than 1.40%. If it is, you'll be sorry you hurried to switch.
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Vonage IPO Tumbles in Debut (May 24, 2006)
I'm so glad I didn't participate in the IPO when Vonage offered the IPO shares to its customers. Now with the first day tumbling, Vonage has a customer-shareholder crisis to deal with -- for those who joined in the program, the savings from all these ...
Buffett's Batting Average Is Sinking (May 6, 2006)
By scholastic measures, Buffett is lagging the competition in the last decade. Should you continue to believe in the Oracle's premium?
Disclosure: My Berkshire Hathaway purchase in last August and November only appreciated 1.1% so far. The stock is even more range-bound than MSFT. :-)
Latest Advice On Wall Street: Buy Currencies (May 3, 2006)
Currency trading is a zero-sum game, and it is unrealistic to expect individual investors can beat the professional in this market. Maybe a wiser strategy is to buy foreign currency denominated equity, as recommended by the Oracle.
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