So i wanted to throw it out there...I have been 70% in cash since last October. Mostly in money market and short term stuff that earns nothing. This is the highest % I had in cash for the last 15 years or more, since normally I would be 80-85% invested. The other 30% is roughly split between some mutual funds and my trading account. Roughly 2/3 of the invested money is in 401k/IRA accounts. I am actively trading about 1/2 of the trading account..the other half is dry powder, so in reality I more like 80% cash.
Question: where do you invest cash...I want to remain fairly liquid in case I need to access it and to earn returns above those paid by banks and money markets. I am willing to take more risk with it, but not anything that would be correlated with market returns. What are some interesting alternatives to cash to offset my equity exposure until the market normalizes?
Question: where do you invest cash...I want to remain fairly liquid in case I need to access it and to earn returns above those paid by banks and money markets. I am willing to take more risk with it, but not anything that would be correlated with market returns. What are some interesting alternatives to cash to offset my equity exposure until the market normalizes?
This post is more than 60 days old. Replying to it might be confusing for other members reading the discussion.
By all means, keep the ball rolling and post a new opinion.
- Advertisement -
7 Comments
Top 2%
blacktuna
Mar 01 2009 at 1:08PM (EST)
IEF is my favorite for this.
New
ROLEX18K
Mar 01 2009 at 1:33PM (EST)
Buy yourself a nice Swiss watch and German super car, buy your wife diamond jewelry and anything else she wants, go for expensive vacation first class, throw cash around, tip everybody who makes you feel good, redesign your home, buy some antiquities you like (Art Nouveau, Barocco,Rococco ?) paintings ( I just bought 2 very expensive ), what else? That's it actually, trade from what you have and enjoy life, wear Paul&Shark Yachting and relax. This is what I am doing, i don't have even 1$ in savings and all cash I can get I spend with pleasure, money is junk paper, health and people whom you love around you are worth more than all the money in the world.
Top 90%
Briggsy
Mar 01 2009 at 2:54PM (EST)
Ginnie Mae funds have enjoyed fairly low volatility and pay more than money market funds.
Top 1%
maven100
Mar 01 2009 at 3:42PM (EST)
ok...spending all your money is a nice way to part with your cash..i get it. I was lloing more for suggestions to invest cash, without altering my risk profile. We are clearly in a capital preservation period. IEF scares me..as any long term treasury is right now. although I probably have some in T's indirectly. ..i can see how obama's policies will create a never ending supply of Ts..and with yields near zero, i am not sure i have an have much of appetite to take a longer term risk..It is also down 6-7% ytd...not really a riskless proposition...
briggsy -I have not looked at GNMA's...any etfs or mut funds you can suggest?
Top 1%
slara512
Mar 01 2009 at 8:07PM (EST)
if you think the banks will pay their debts, principal protected notes pay at 10 and you can buy them for less. Search RRM, NKS.
Top 1%
V4Vendetta
Mar 01 2009 at 9:00PM (EST)
Check out the FDIC.PLUS package from foliofn:
https://www.folioinvesting.com/content/gui/default_FDIC.jsp
Top 90%
Briggsy
Mar 01 2009 at 11:49PM (EST)
maven here's two:
Vanguard's VFIIX
Fidelity's FGMNX