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IVNORD 
Forum Senior Member
Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191
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 Posted: March 19 2008 at 22:06 |
 Finnforest wrote:
If I knew I'd be out there digging with my shovel 
Kidding aside, some of the younger folks moving assets out of stocks are either moving to lower paying but stable money market/CD investments, or simply using it to pay down their mortgage which gives a tangible return.
The people I know who are actually removing cash from the bank....I have no idea where they're putting it. Hopefully they have a safe or something.
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Just in case, tell them their cash in the bank is insured by FDIC, up to $100K.
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IVNORD
Forum Senior Member
Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191
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Posted: March 19 2008 at 22:10 |
rileydog22 wrote:
It's better to have it in a CD or even T-Bill, as either of those will most likely beat inflation for you. With the Fed dumping bills into the economy, the cash sitting in your safe is slowly but surely wasting away. |
Neither a CD or treasuries will beat inflation. Especially with the interest rates falling. THey could soothe the pain though
P.S. Once using rough calculations, I figured that every $100 of the 30-year bond at average interest of 6% will return $27 in combined pricipal and interest adjusted for inflation if held thru the life of the bond, i.e. 30 years. Given that my calculations were done during my morning commute, the error could be significant, but even if the error is 100%, the payout of $54 on every $100 in 30 years is still a sweet deal
Edited by IVNORD - March 19 2008 at 22:19
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rileydog22
Forum Senior Member
Joined: August 24 2005
Location: New Jersey
Status: Offline
Points: 8844
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Posted: March 19 2008 at 22:10 |
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Are CD's FDIC insured as well?
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Padraic
Special Collaborator
Honorary Collaborator
Joined: February 16 2006
Location: Pennsylvania
Status: Offline
Points: 31169
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Posted: March 19 2008 at 22:11 |
Finnforest wrote:
Kidding aside, some of the younger folks moving assets out of stocks are either moving to lower paying but stable money market/CD investments
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** Hand raised ** I'm one of these people. The whole Bear Stearns thing spooked me sufficiently such that I want to sit on the sidelines for a while and see how this whole thing shakes out. Even more extreme, a friend of mine is so negative that he's 100% short in the stock market.
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Finnforest
Special Collaborator
Honorary Collaborator
Joined: February 03 2007
Location: The Heartland
Status: Offline
Points: 17562
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Posted: March 19 2008 at 22:12 |
IVNORD wrote:
Finnforest wrote:
If I knew I'd be out there digging with my shovel
Kidding aside, some of the younger folks moving assets out of stocks are either moving to lower paying but stable money market/CD investments, or simply using it to pay down their mortgage which gives a tangible return.
The people I know who are actually removing cash from the bank....I have no idea where they're putting it. Hopefully they have a safe or something.
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Just in case, tell them their cash in the bank is insured by FDIC, up to $100K. |
The kind of people pulling money out of the bank out of fear of economic catastrophe are not reassured by an FDIC backing. If it all goes, FDIC can't save everyone, especially with our government being so whacked with debt. Folks who remember the Depression believe banks and government safety nets are far from infallible in the face of the masses needing them all at once.
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Padraic
Special Collaborator
Honorary Collaborator
Joined: February 16 2006
Location: Pennsylvania
Status: Offline
Points: 31169
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Posted: March 19 2008 at 22:12 |
rileydog22 wrote:
Are CD's FDIC insured as well?
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Yes, provided the issuer is a member.
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IVNORD
Forum Senior Member
Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191
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Posted: March 19 2008 at 22:20 |
rileydog22 wrote:
Are CD's FDIC insured as well? |
Up to $100K in any bank for the same holder in all accounts combined.
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IVNORD
Forum Senior Member
Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191
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Posted: March 19 2008 at 22:22 |
NaturalScience wrote:
Finnforest wrote:
Kidding aside, some of the younger folks moving assets out of stocks are either moving to lower paying but stable money market/CD investments
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** Hand raised **
I'm one of these people. The whole Bear Stearns thing spooked me sufficiently such that I want to sit on the sidelines for a while and see how this whole thing shakes out. Even more extreme, a friend of mine is so negative that he's 100% short in the stock market.
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Beware of bear market retracements. They can devaste a short account.
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Padraic
Special Collaborator
Honorary Collaborator
Joined: February 16 2006
Location: Pennsylvania
Status: Offline
Points: 31169
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Posted: March 19 2008 at 22:23 |
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rileydog22
Forum Senior Member
Joined: August 24 2005
Location: New Jersey
Status: Offline
Points: 8844
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Posted: March 19 2008 at 22:25 |
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My dad was telling me about a fund called "market neutral" or something where in each sector they buy the "best of breed" and short-sell a mediocre stock, so that way you should make some money independent of overall market fluctuations. I'm not sure if that'll beat inflation or not, but it sounds like a fairly solid investment at this point.
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IVNORD
Forum Senior Member
Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191
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Posted: March 19 2008 at 22:26 |
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Padraic
Special Collaborator
Honorary Collaborator
Joined: February 16 2006
Location: Pennsylvania
Status: Offline
Points: 31169
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Posted: March 19 2008 at 22:29 |
rileydog22 wrote:
My dad was telling me about a fund called "market neutral" or something where in each sector they buy the "best of breed" and short-sell a mediocre stock, so that way you should make some money independent of overall market fluctuations. I'm not sure if that'll beat inflation or not, but it sounds like a fairly solid investment at this point.
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Not sure what the advantage is over something like a money market - sounds like the yield couldn't be too much higher than cash or a reasonably safe bond fund.
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Padraic
Special Collaborator
Honorary Collaborator
Joined: February 16 2006
Location: Pennsylvania
Status: Offline
Points: 31169
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Posted: March 19 2008 at 22:31 |
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IVNORD
Forum Senior Member
Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191
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Posted: March 19 2008 at 22:36 |
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Padraic
Special Collaborator
Honorary Collaborator
Joined: February 16 2006
Location: Pennsylvania
Status: Offline
Points: 31169
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Posted: March 19 2008 at 22:42 |
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^^ Funds like FXY and GLD, I believe.
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Finnforest
Special Collaborator
Honorary Collaborator
Joined: February 03 2007
Location: The Heartland
Status: Offline
Points: 17562
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Posted: March 19 2008 at 22:45 |
How does a person in the States invest securely in the Yen? Is there a way to do it from home without involving brokers, etc? Actually I have the best strategy. I invest in Italian prog mini-lp sleeves. Guaranteed to go WAY up. 
Edited by Finnforest - March 19 2008 at 22:46
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IVNORD
Forum Senior Member
Joined: December 13 2006
Location: USA
Status: Offline
Points: 1191
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Posted: March 19 2008 at 22:47 |
NaturalScience wrote:
^^ Funds like FXY and GLD, I believe. |
Gold lost $60 today, that's $6,000 per contract. I was watching the futures and it was a blood bath. GLD was down too, not as dramatically thou.
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Slartibartfast
Collaborator
Honorary Collaborator / In Memoriam
Joined: April 29 2006
Location: Atlantais
Status: Offline
Points: 29630
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Posted: March 20 2008 at 08:31 |
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Released date are often when it it impacted you but recorded dates are when it really happened... 
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