Per earn money it takes essentially three elements from your savings. That is, give time to time, diversify risk and have at least a little bit of risk appetite.
However, it also often affects the correct time in which you enter a certain operation. In this regard, let’s understand why those who have money on their current account could soon have a golden opportunity in their hands thanks to these exceptional events.
When do the real deals take place?
Many savers are risk averse and often take refuge in long-term investments in fixed income instruments. That is, government bonds and postal bonds (and in a certain sense also the brick: it does not distribute coupons and / or interest, but rents).
But when is the real deal in buying such tools? Finance manuals teach us that perfect fixed income timing falls under three circumstances:
a) when inflation is high and the market expects its next return;
b) when the official rates of the reference central bank (in this case the ECB) are high and here too the market expects them to be cut;
c) finally, when, on the other hand, the spread is at its maximum for the period and according to financial analysts, the (monetary and political) Authorities will do everything possible to bring it back.
Perhaps savers could find themselves a golden opportunity in their hands
At this point we must understand why those who have money in their checking account could soon have a golden opportunity in their hands thanks to these exceptional events.
The reference is to inflation, as far as the Eurozone is concerned. But also to the spread, as far as Italy alone is concerned.
Let’s explain it better. In half of Europe, Germany in the lead, there is the problem of rising costs of living. Could this event call into question the ECB to review a rate hike? We do not know; certainly the ECB today has the grain of having to support the economy, thus keeping the cost of money low.
Furthermore, for a year now, the EU states have been making extensive use of budget deficits due to Covid. So if you raise rates, it will affect the cost of debt. So squaring the circle will certainly not be easy, quite the opposite.
In any case, inflation remains certain, in Italy also aggravated by the return of the spread. Yesterday the 10-year BTP-Bund yield spread reached 122 basis points, before closing at 119. Consequently, the yield of the 10-year BTP also increased, passing to the new 1.08% compared to 1.06% of Thursday.
In short, the music is changing a bit if you consider that in mid-February the yield of the ten-year was about 0.46%.
Again, for example, on Thursday the 13th, the Treasury placed a 30-year BTP at a yield of 2.06%, in practice almost as much as 2.15% of the March 2072 BTP issued in March. A difference of only 9 cents but with a difference of 20 years!
Instead in the article mentioned here the link we illustrate in which particular cases it is possible to earn even 3% with the deposit account.
Let’s get to the point: why could those who have money in their current account soon have a golden opportunity in their hands thanks to these exceptional events?
Now, returning to the three timings described above, it is plausible to conclude that potentially more interesting conditions can be seen on the market. The small saver wonders: will these yields improve further, and if so, by how much?
We cannot predict the future. However, we can read the present with critical eyes and shape our portfolio according to how the markets go and the dynamics that govern it.
Each saver will then draw the appropriate conclusions and we are sure they will choose the best way to enhance their savings.
In conclusion, therefore, those who have money in their checking account could soon have a golden opportunity in their hands thanks to these exceptional events. Finally in the article mentioned here the link we show you how to invest the money from redeemed postal savings bonds and successfully benefit from the return of inflation.
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(We remind you to carefully read the warnings regarding this article, which can be consulted who”)
