Going to 33% cash position

Hugh R · 08-12-2006, 01:50 PM

With the terrorist crap, Isreal/Lebanon, etc, etc. I'm going to about 1/3 cash in CDs. Especially with my mutual funds that have done less than 5% over the past year. I can get 5% in CDs that are insured and guaranteed. What are you doing these days?

1973911s · 08-12-2006, 01:51 PM

I moved to 50% cash over the last few months, as I got a 5.25 CD for six months.

Michael

jyl · jyl's Garage

I'm appx 80% cash.

tabs · 08-12-2006, 02:52 PM

If the ***** hits the fan do U think your "Insured Savings" will be worth anything????

turbo6bar · 08-12-2006, 04:42 PM

90+% cash. I want to wait to see how things pan out over the next five or six months.

fintstone · fintstone's Garage

65% Real Estate (single family rentals)
35% Equities

1973911s · 07:25 PM

People aren't putting there 401K money into money accounts are they?

Michael

pwd72s · 08-12-2006, 07:12 PM

40% equities...60% "cash"...CD's, I Bonds, etc.

Hugh R · 09:05 PM

Quote:

Originally posted by SoCal911SC
30% cash?? If you're saying your 70% in equities, you're quite a risk taker.

Until last week, I was 100% equities. I took my accounts over from Smith Barney about 15 months ago after they giving me piss poor returns for years. Since I took them over I'm about 9% up, was more like 20% for a while, but looking at it, many of the mutual funds I was in have given me less than 5% to date returns, some where doing better, then pulled back. The way I figure it, if I can get 5.2-5.4% on a CD with no, or little risk, why should I be in funds that do a similar return, or less in a relatively good market? What will those funds do in a really bad market? In looking at the comments above and what I'm reading in the business world, I may well go above 50%. Any thoughts on cash positions besides CDs that give better than 5 to 5.4%?

84porsche · 84porsche's Garage

I am predominately cash as well. I can't decide what to invest my IRA in and any savings is in staggered CDs lately. I am waiting until year end to sell stocks hoping for higher returns so I will not lose as much on my investments.

tabs · 08-13-2006, 02:28 AM

U Boyz are just tooo smart for me!

Paul T · 08-13-2006, 04:57 AM

I'm about 10% cash 90% equities - I've got lots of time and a strong stomach..

David · David's Garage

Not counting my 401K and IRA's, I'm about 33% cash.

I used to think folks buying gold were nut jobs, but now I'm thinking it may not be such a bad idea.

Rodeo · 08-13-2006, 08:01 AM

Quote:

Originally posted by tabs
U Boyz are just tooo smart for me!

I'm in collectible spoons ... if the market tanks, at least I can still eat ice cream

turbo6bar · 08-13-2006, 08:10 AM

Hugh R, you might consider diversifying into US Treasury bills. With the current inverted yield curve, the 28-day has the highest yield at 5.22%. However, an inverted yield curve portends a slowing econony and/or recession. In this case, slightly longer terms may be advisable. The 2-yr note is about 0.1% less.

lendaddy · 08-13-2006, 08:11 AM

I've got $220 in my wallet, so I'm about 45% cash.

fintstone · fintstone's Garage

[QUOTE]Originally posted by tabs
U Boyz are just tooo smart for me! [/QUOTE

So how about you? Other than guns and other tangibles/collectibles.......and buffets; how are you investing now?

I see you have been doing some nice landscaping over at the trailer park....any thoughts on the Vegas real estate market?

fintstone · fintstone's Garage

If all the folks that post here who predict the democrats to take over the legislative and executive branches of government are correct....it seems that one should start preparing for higher taxes, higher interest rates, higher unemployment, and a much weaker economy....probably a significant recession. Is that is why so many are going predominately to cash.

RoninLB · 08-13-2006, 03:19 PM

Some pros say the best economic predictor of political voting is a voter's subjective view of the future. Even thou they keep on spending they may not feel good about the future. AFAIK a majority of voters are convinced the economy will get worse.

pwd72s · 08-13-2006, 04:28 PM

Quote:

Originally posted by turbo6bar
Hugh R, you might consider diversifying into US Treasury bills. With the current inverted yield curve, the 28-day has the highest yield at 5.22%. However, an inverted yield curve portends a slowing econony and/or recession. In this case, slightly longer terms may be advisable. The 2-yr note is about 0.1% less.

I agree. Also, Hugh, you are in California, right? When comparing rate of return on cash securities, also remember that treasury issue interest is NOT subject to state income tax. Depending on your tax bracket, treasuries can actually put more in your pocket after factoring in the tax reduction. You needn't pay brokerage fees buy treasuries. You can open your own account with the federal reserve bank.

www.treasurydirect.gov

Or...what we did lately... Vanguard offers a treasury money market account. It has check writing priviledges and the fees are laughably low.