Where to put 100K

[saluki9]

I'm still waiting for something other than a pretty picture that supports your statement that long yiekds must always be above short yields. I know they say a picture is worth a thousand words, but not in this case.

Just ignore him, he will probably go away :

 

[FinanceDude]

Funny the "guru" never answered the question.   

Consumer spending down and bond yields are rising.  Stick that in your fundamental pipe and smoke it.   

Im sorry.............I don't respond to charts.........

I used to be on video conference calls at 7:30am with our analysts to show us the "hot buys"..........they used a lot of charts too, and those stocks never made a lick of money for any clients..............

 

[mb]

Maybe. Or maybe not. Gotta pull your head out of the technician's ass sand and look around at the fundamentals every once in a while.

Of course Fama, etc. will tell you that this isn't going to help either!

 

[IHateCNBC]

...............................

 

[IHateCNBC]

You really think yields have bottomed? Really?

I guess that's why we have contrarians

BTW: I'd ladder some t-bills and notes, give yourself a little time to think about it

.........................................no you have sheeple on this board. Talking heads are saying buy stocks because bond yields are going to fall...and they vomit that same crap on here. Listen to Mr Guru...just do not ask him a question that goes against what he says or see the witty personal attacks start. Of course that never answers the question.

But I am on the right side of the trade. Which is why I am not a working stiff working for someone else.

 

[IHateCNBC]

"other things being equal" we would expect long yields to exceed short yields, due to, if from nothing else, increased uncertainty/risk with time ... but there are, at the extreme, two ways to getting there from here ... only one of which involves increasing longer term yields.

Hey, common sense does not equal fundementals. :

But I guess fundementals are taking interest rate risk with a smile.

 

[brewer12345]

Hey, common sense does not equal fundementals. :

But I guess fundementals are taking interest rate risk with a smile.

Again, I ask: any particular reason besides "the pretty picture told me so" why you think long yields must be above short yields?

I note that the yield curve is still inverted.

 

[saluki9]

But I am on the right side of the trade. Which is why I am not a working stiff working for someone else.

Why, who is?

 

[My Dream]

If I knew remotely anything about what any of you we're talking about I'd make a comment. As it stands now, I just sit back and read.......reread.......read again......get a headache, then keep my mouth shut.

Until sometime next year, I'm still a newbie.

 

[Nords]

If I knew remotely anything about what any of you we're talking about I'd make a comment. As it stands now, I just sit back and read.......reread.......read again......get a headache, then keep my mouth shut.
Until sometime next year, I'm still a newbie.

Your observation indicates that you're no longer a newbie!

If Bernstein's "Four Pillars" isn't doing it for you, have you tried Frank Armstrong or the BogleHead Guide to Investing?

 

[My Dream]

Nords, you overestimate me as no longer being a Newbie, oh and by the way, you forgot to add the name "Grasshopper".

Give me about 10 years and I'll catch to all of you in knowledge and wisdom. My only problem is that I have to figure out how to average 10% off of our portfolio in the mean time........................Master.


I'm going to have to reserve "Four Pillars" and "BogleHead Guide to Investing" at the library since my ER budget won't allow me to purchase books anymore. I reserved one already and I think it's called 'Your money your life' something like that.

 

[cube_rat]

You guys/gals (X or Y?) crack me up

Thanks to all for your valuable feedback, and, err, entertainment.

 

[FinanceDude]

You guys/gals (X or Y?) crack me up

Thanks to all for your valuable feedback, and, err, entertainment.

This place is WAY MORe interesting than other chat rooms I have been on..........

You guys/gals ALL crack me up..............

 

[brewer12345]

This place is WAY MORe interesting than other chat rooms I have been on..........

Yeah, I know. Those gay sex chat rooms are SO single-minded...

 

[FinanceDude]

Yeah, I know. Those gay sex chat rooms are SO single-minded...

Are you picking a fight?

 

[paradiseken]

Yeah, I know. Those gay sex chat rooms are SO single-minded...

Could also by BI-minded...

 

[cube_rat]

Yeah, I know. Those gay sex chat rooms are SO single-minded...

 

[FinanceDude]

I think brewer is mad about something.............or maybe, LACK of something.........

 

[brewer12345]

Are you picking a fight?

Nah. C'mon, it was meant as a joke.

 

[FinanceDude]

Nah. C'mon, it was meant as a joke.

Ok.......... I guess I'll "turn the page" on this one.................

 

[azanon]

Sorry if this question is too broad. I'll be receiving 100k in about a month and I'd like to put it in a place that's relatively safe, that's not a MM account. I have money already in a Vanguard Wellsely account and so far I'm very happy. I'm thinking STAR or Wellington are good funds too. Any other good recommendations on Vanguard funds which have consistent growth with low to medium volatility?

I'm curious what you have against a mutual fund MM account. Given the moderate and rising interest rates, and the recent surge of the stock market, you could do much worse. With only a 5 year timeframe, i'd definitely be an option i'd consider.

It just sounds to me like preservation of principal is important to you for this money. "Medium" volatility could easily involve an investment that could cost you as much as 30% of your principle if we just happened to have a "bad" 5 years with whatever medium volatile investment you end up picking.

Give me relatively high interest rates and the need to use the money in the short term, and i'm all over a good paying money market account like those you get from mutual fund companies (not banks). They're also great for when you're just being defensive, if you're a timer.

 

[FinanceDude]

I'm curious what you have against a mutual fund MM account. Given the moderate and rising interest rates, and the recent surge of the stock market, you could do much worse. With only a 5 year timeframe, i'd definitely be an option i'd consider.

It just sounds to me like preservation of principal is important to you for this money. "Medium" volatility could easily involve an investment that could cost you as much as 30% of your principle if we just happened to have a "bad" 5 years with whatever medium volatile investment you end up picking.

Give me relatively high interest rates and the need to use the money in the short term, and i'm all over a good paying money market account like those you get from mutual fund companies (not banks). They're also great for when you're just being defensive, if you're a timer.

I beleive he said NOT in a MM account, meaning he wants to get a return higher than 5% or so.............

There are plenty of places to do that.............although a new bank opened in my hometown, and they've got a "teaser rate" of 6% on a 4-month CD..............

 

[azanon]

I beleive he said NOT in a MM account, meaning he wants to get a return higher than 5% or so.............

Hence, why i asked him/her what he has against a mutual fund account.

There are returns over the long term greater than 5%, no doubt, but not without risk of losing principle. I'm currently 75% or so stock myself, but this is money with an investment horizon approaching 30 years.

Definition of a CD: 1. Return of a money market mutual fund except your money is locked up. Locking your money up for an extra 1% over a short term is definitely not worth losing the flexibility (liquidity). If i was a betting man, i would bet banks are able to offer higher rates on CD's first and foremost because they make money off of people who break their cd's when the inevitable emergency comes up. Murphy is still alive and breathing.

Anyway, i want a really high paying investment with no risk too - when you find one, let me know.