Bought a Certificate of Deposit

As it's very probable that the Federal reserve will cut interest rates again at the end of January and stocks probably will not do very well in the next two quarters, I've decided to buy a 6 month 5.1% APY Online CD from Washington Mutual.

I hope they don't go out of business, as I really like their service. Yeah, deposits and CDs are insured up to $100,000, but I wonder whether insurance companies will be able to pay if big banks start going under.

Still, I think the CD is a safer investment right now than most other things, and the yield on my savings account, now at 4.75% APY, will probably drop soon after the rate cut. While it doesn't exactly put me ahead of inflation as the real inflation rate is much higher than what the Fed says, for consumer prices for things like food and gas are rising sharply, hopefully it'll have me losing less money than just keeping it in my savings account.

Despite my belief that stocks won't do as well in the near term, I have been eying Pfizer (PFE) for a while, and would like to buy it when it's under $20/share. It's got a lot of cash, a great, steadily rising dividend, and its price has been battered because its patents are expiring on some profitable drugs. It's pretty likely, however, that it'll develop new profitable drugs in the future, and I'd like to get in near the bottom.

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