# Hive yield I like investing in things that give stable returns. I had my fair share of gambling on trading and decided it is not worth it. Hive is a great platform for getting stable returns because the HBD yearly yield is at 10%. As I witness I support a 15% yield, talking about it, if you support a 15% yield too, consider voting for me and other witnesses that support raising the HBD yield!

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https://vote.hive.uno/@igormuba

# Government bonds ![bonds](https://brazilian.report/wp-content/uploads/2021/06/shutterstock_294637502.jpg) >Image source: https://brazilian.report/liveblog/2021/06/29/treasury-debt-bonds-dollars/ Anyone that can invest in Brazil can buy bonds directly from the government, the minimum investment is low, ranging from $10 to $20 US dollars (in local Brazilian currency obviously), and it is taken as the safest investment possible, because you will only lose if the government goes bankrupt, which in this case all other investments would lose too. The main two types of government bonds are a fixed rate bond and a inflation-tied bond. Right now the fixed rate bonds range from 9.67% to 10.64% a year with a delivery date from 3 to 10 years. The bonds tied to the inflation range from inflation+4.45% to inflation+4.82% a year. The delivery ranges from 5 to 31 years! The fixed rate bond is risky, because if the inflation passes your yield you lose value, but if the inflation is low for a long period of time it can be more lucrative than the other bonds. # Bank bonds I won't get in depth on this kind of bonds because there is a huge variety. Some are dumb and you clearly lose against inflation, others offer mind blowing returns at high risks, usually from banks that are desperate for money. One bank in special has a bond that yields 13.5% annually with an expiration in 10 years! Throwing that in a calculator it means in 10 years you will get back over 300% what you put in! The catch is that this bank is very very small and not very profitable, so their bond is so absurdly high because people don't want to trust it. # Bank bonds pay huge, but are they safe? ![FGC](https://kontaazul.com.br/wp-content/uploads/2020/07/o-que-e-fgc-como-funciona.png) The bank bonds are safe and not safe at the same time. At one hand, the government has a thing called "FGC" that provides ensurance for up to R$250,000.00 (250 thousand Brazilian Real) which covers both the investment and profits from your loan to the bank up to that 250k ceiling. First of all, as a citizen, not as an investor, I think this insurance is totally degenerate. It means banks can offer absurd yield rates at absurd risks, like that one that has 13.5% a year, and if the bank goes bakrupt the government covers the losses up to 250k per investor. As an investor though, yeah, I like it and take it gladly. The catch with those high yield bank bonds is that even if your losses are covered, the government may not be able to pay you immediately. If the bank is small as had low debts yes, in days or weeks they will give you what the bank owed you (up to 250k), but if it is a big bank it could take months or years until every investors gets his share! That means your money would be stuck and inflation would be eating the value you are owed! # What I do My strategy while investing in Brazil is to buy government bonds tied to the inflation, so if the inflation skyrockets my money is protected. At the same time I buy a few of those high yield and high risk bank bonds. If the bank goes bankrupt I risk having low profitability because my money would be stuck until the insurance pays me, but since I am not investing big I am comfortable. Also, I keep track of the bank bonds I invest at, so that my investment + profits up to expiration does not reach the 250 thousand BRL ceiling, so if the bank gets broken 1 day before expiration, I will have all my profits covered. In practice it means, if in 10 years my investment will grow 300% I can't invest more than 83k, so that at the end I will have 249k and the insurance will be able to cover it all. # Why I prefer this The brazilian stock market has an yearly return that is, on average, 6% higher than inflation. It is a known fact that even the best traders struggle to beat the market, so the government bond that guarantees to pay the inflation + over 4% is a great deal. That alone gives me a performance close to the stock market without the risks of the stock market! Also, in the past decade, gold had an annualized growth rate slightly above 13% in brazilian reais, it beat inflation, the stock markets and even beats the dollar. Remember that bank that pays 13.5% a year? Yeah, that bond beats gold, which beats the dollar (if the bank does not go bankrupt). So I think this strategy is good as I have aversion to risk, I have two investments at hand that together can beat inflation, can tie with stocks, and can get near the returns from gold, all of that with much lower risks. # But is Brazil stable? ![brazil](https://upload.wikimedia.org/wikipedia/commons/thumb/6/6d/Map_of_Brazil_with_flag.svg/1200px-Map_of_Brazil_with_flag.svg.png) Brazilian Real devalued a lot, in almost 10 years it fell to under half the value. But the bonds I mentioned would compensate and even keep the dollar value relatively safe and possibly growing. But I myself keep some dollars here on Hive "just in case". Hive is not perfect and is a super small blockchain, so I think it also very risky, riskier than Brazil, even the fixed return rate of HBD depends on Hive not failing. Hive, just like brazil, can face crisis any time, but here we don't have insurances. Now the core issue. Brazil is not stable. We had a miraculous growth during the 2000's, during the government of the workers party (socialist only in the name), we were the 6th biggest world economy and we were almost getting a seat on the UN security council. However, corruption scandals tore apart our reputation and we fell deep into multiple crisis. Typical of a third world country. Investing in Brazil carries risks. As a brazilian I feel safe investing in here because I don't see me leaving anytime soon, and I hope that these crisis are a cycle nearing its end. Bad governments come and go. But even if we solve our crisis and get our economy back to the top 8 world economies, who knows how long would that last?....

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