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      07-03-2008, 12:23 PM   #1
fermion
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where to park money during this recession?

i was wondering where some of you guys are parking your money during these hard times. i hold quite a lot of mutual funds and stocks. these have been taking a hit recently.

before giving up and switching to wealth preservation mode (ie, high yield savings account to offset inflation and decline in dollar) I was wondering if any of the wealth people on this board have any recommendations.

i've comtemplated moving money into real estate, but i don't think that market has bottomed out yet.
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      07-03-2008, 12:25 PM   #2
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I parked whatever is left of my green fleet in a online hsbc savings with 3.5% yield. Damn Bush...
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      07-03-2008, 12:57 PM   #3
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I am having this same discussion with my parents (they are in their 70's)...seems that CD's are the best that i can get for their situation...we are just breaking them into 20 k increments so can get at when needed and keeping to relatively short terms...with staggered expirations

nothing else is very attrative for short term money...for long term...stocks...index funds are still the way to go imho...just my .04 (inflation ya know)
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      07-03-2008, 01:34 PM   #4
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high yield savings account FTW.

Also CD's but minus the tax deferal
Most fixed annuites are paying higher than the national CD average. And they are guaranteed.

There is always a MM option as well.
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      07-03-2008, 02:29 PM   #5
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gold buillions if you can

that would be ballin
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      07-03-2008, 02:31 PM   #6
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you all are welcome to park yo money at my place, free of charge of course to my fellow e90 members

can't get any sweeter than this, cha-ching!
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      07-03-2008, 02:36 PM   #7
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market timing = bad. the last 5 recessions, following the recssion the markets have always rebounded to where they were before the recsssion. if you jump out somewhere on the downswing, you may miss the bottom, but you are probably going to miss the upswing as well. if you can stomach it, stick it out. if you can't, you were probably taking to much risk to begin with.
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      07-03-2008, 03:08 PM   #8
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Quote:
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market timing = bad. the last 5 recessions, following the recssion the markets have always rebounded to where they were before the recsssion. if you jump out somewhere on the downswing, you may miss the bottom, but you are probably going to miss the upswing as well. if you can stomach it, stick it out. if you can't, you were probably taking to much risk to begin with.
so you are saying you have seen ppl scramble to avoid hitting bottom and as a result did not get to benifit from the upswing after a recession. I have seen my porfolio fallen at a faster rate then rising but I am not selling right now. Someone told me not to buy stock at the moment and just but it in cash reserve in fidelity or MM.
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      07-03-2008, 03:22 PM   #9
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Quote:
Originally Posted by jdink View Post
market timing = bad. the last 5 recessions, following the recssion the markets have always rebounded to where they were before the recsssion. if you jump out somewhere on the downswing, you may miss the bottom, but you are probably going to miss the upswing as well. if you can stomach it, stick it out. if you can't, you were probably taking to much risk to begin with.
+1

OP, you only screwed yourself by jumping ship when things were down. Over the long run you're still fine.

To whoever was talking about their parents: At that age, weren't they already in primarily/totally CDs for a long time past?
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shit, if i had that kind of money id buy a gtstreet for monday, an ascari a10 for tuesday, a DBS for wednesday and id just ride jessica alba the rest of the week.
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      07-03-2008, 03:30 PM   #10
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Quote:
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+1

OP, you only screwed yourself by jumping ship when things were down. Over the long run you're still fine.

To whoever was talking about their parents: At that age, weren't they already in primarily/totally CDs for a long time past?
+1...

also, if it is a taxable account you touble screw yourself because you pay taxes on any gains you used to have. if its a non-taxable accounts its not as bad....

not to mention any trasaction fees.
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      07-03-2008, 03:32 PM   #11
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Quote:
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so you are saying you have seen ppl scramble to avoid hitting bottom and as a result did not get to benifit from the upswing after a recession. I have seen my porfolio fallen at a faster rate then rising but I am not selling right now. Someone told me not to buy stock at the moment and just but it in cash reserve in fidelity or MM.
difference between putting new money into things, then moving money around. moving money around involves trascations costs (moving it once, then moving it back), as well as taxes , selling it once, and then selling it again to move back. to many costs involved. not very effecient.
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      07-03-2008, 06:01 PM   #12
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Quote:
Originally Posted by txusa03 View Post
so you are saying you have seen ppl scramble to avoid hitting bottom and as a result did not get to benifit from the upswing after a recession. I have seen my porfolio fallen at a faster rate then rising but I am not selling right now. Someone told me not to buy stock at the moment and just but it in cash reserve in fidelity or MM.
Well, you've heard the expression "buy low and sell high?" This would be the low part. I'm continuing my regular purchase plan, and when the funds rebound I'll have more shares on the upswing.
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      07-03-2008, 06:06 PM   #13
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Quote:
Originally Posted by fermion View Post
i was wondering where some of you guys are parking your money during these hard times. i hold quite a lot of mutual funds and stocks. these have been taking a hit recently.

before giving up and switching to wealth preservation mode (ie, high yield savings account to offset inflation and decline in dollar) I was wondering if any of the wealth people on this board have any recommendations.

i've comtemplated moving money into real estate, but i don't think that market has bottomed out yet.
It depends on a lot of factors. i'm sure u want something low risk. How much money? 50k,100k? How much income do you have coming in? Do you have kids? what are your monthly debts?
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      07-03-2008, 06:07 PM   #14
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Keeping it where it is.. You only lose when you sell. And this market is pure panic driven right now.. Even you are freaking out.. I am still actively putting money in even to this day I just wrote a check yesterday form my bank account to invest. You must always look for long term gains not short runs in the market, long term =10 + years.. Right nows a great time to invest and take advantage of the down market.
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      07-03-2008, 07:40 PM   #15
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Quote:
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Keeping it where it is.. You only lose when you sell. And this market is pure panic driven right now.. Even you are freaking out.. I am still actively putting money in even to this day I just wrote a check yesterday form my bank account to invest. You must always look for long term gains not short runs in the market, long term =10 + years.. Right nows a great time to invest and take advantage of the down market.
How's that???
What is positive about this economy?
What is positive about the world's economy?
What happens when the effects of $1T wasted are felt?

I hope you're right, but I predict we're in for some ugly times...and not just for the short term...
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      07-03-2008, 07:49 PM   #16
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I would also be researching what it takes to make batteries.

i.e. Hybrid cars currently use nickel and are moving to Lithium. As demand increases so will these commodities.

I suspect a gold rush will occur with nickel and lithium as more cars become electrified.

There are lots of investment plays to consider during this down turn as energy is the prime cause of the downturn.
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      07-03-2008, 08:42 PM   #17
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      07-03-2008, 09:48 PM   #18
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How about some options trading? =)
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      07-03-2008, 10:19 PM   #19
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use the money and buy oil, hide it in your basement...thats like gold
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      07-03-2008, 10:29 PM   #20
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Quote:
Originally Posted by FirstClass View Post
+1


To whoever was talking about their parents: At that age, weren't they already in primarily/totally CDs for a long time past?

no...this was money from selling a second home...but may need in their later years..
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      07-03-2008, 10:54 PM   #21
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Swiss bank accounts ftw.
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      07-03-2008, 11:07 PM   #22
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Dubai.
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