I have discovered the perfect diversification strategy

Either this is 1930 all over again or it’s a wonderful buying opportunity. Needless to say, I don’t know which is the case. But for those of you who have a big tax bill coming due in January, I have the perfect diversified strategy for you. Pre-pay your taxes while investing in stocks.

If armageddon arrives, you’ll be delighted with the risk-free zero nominal rate of return you’ve achieved on your tax payment. If not, your stock investment will pay off instead.

No? Well, I’m not expecting the call from FT Money any time soon.

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Publishing schedule: Excerpts from "The Undercover Economist" and "Dear Economist", Tim's weekly columns for the FT Magazine, are published on this blog on Saturday mornings.
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