Zero Percent Return is Great! Minneapolis Hardwood Floor Refinishing

Zero Percent Return is Great! Minneapolis Hardwood Floor Refinishing

Get this. For the first time in United States history U.S. Treasury Bonds are paying 0%. This means that investors are willing to take their money out of the stock market, commodity markets, commercial paper markets, and real estate markets, because they are too scared. Instead, they are willing to invest in Treasury bonds and get nothing back in return. If they invest $10,000, they get $10,000 back in a year. Can you believe that? This is how scared people are. Three month Treasury bonds are paying a negative return of 0.01%. So investors are willing to pay $100 today, knowing they will get back $99.99. Is it really this bad? I don’t think so. It depends on how you look at economic cycles. Things come and go, economies grow and contract and people make money and lose it. It has always happened and will continue. But think about it like this. People are so scared to invest their money in assets such as real estate, business stocks, gold, silver, and commercial paper. In the end, demand is decreasing. So what happens in general to these assets? If demand is going down and the supply is not decreasing, then the price is going to drop. So real estate, prices are down 12% in Minneapolis this year. Now some of these houses that is justifiable. But others prices are not decreasing because of fundamentals, they are decreasing because of fear. It is based on an emotional analysis. This is when it is the best time to make money; when everybody is scared to death. Their basing their decisions on pure fear, instead of seeing an amazing deal that will make them wealthy. The smart investor sees this opportunity and takes action. It is actually easier now because there is less competition to bid against him. When the history books are written about this current economic recession, I think people are going to look at the prices of these assets and will be kicking themselves for not taking action. If you interested in a free hardwood floor refinishing estimate give me a call.