We are having significant challenges in the financial market and automotive industry right now, that’s a fact. In challenging times, what do you do then? Well, if you’re like most of the American public, the answer to that would be to panic. In our news and media driven economy, rational thought and basic investment savvy never enter the minds of the general public because “there’s no time for it”. Or that’s what they believe…

Treasury Bills Trade at Negative Rates as Haven Demand Surges

Am I reading into this correctly? The first time I was sent this article I wrote it off as my lack of knowledge about the Treasury Market and my thought that it was probably just the going rate for people that were already in Treasury Bills. Oh no, my friend, throw rationalization out of the window.

After reading through the whole article, I found out that people are investing money in Treasury Bills knowing that they’re going to lose money!

This is my favorite paragraph from the Bloomberg Article:
“If you invested $1 million in three-month bills at today’s negative discount rate of 0.01 percent, for a price of 100.002556, at maturity you would receive the par value for a loss of $25.56.”

People seem surprised when I tell them I invest in Detroit Real Estate. Really? I have investor that just pay cash for houses and make 15%-22% a year without refinancing their money out. I thought they were conservative! It just goes to show that the rational thinkers in this economy are the ones that are going to prosper. Irrational thinking has everyone pulling out of every investment, including conservative Detroit investment properties, which leaves a lot of opportunity for those of us who recognize this.

Let me ask you this, is Warren Buffett buying right now or sitting on the sidelines? He’s buying!

Successfully Yours,
Jared Pomranky
Detroit Market Expert

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