A reader asked in the comment section of this morning’s post about the banking troubles about where do we invest. I would never tell anyone where to put their money, but its really clear from the chart above of the growth in Money Market Fund Assets that now top $1 Trillion. Obviously many investors are parked in cash, waiting out the bear market. The good news is there is a lot of money on the sidelines. If the markets turn around we know where the money is.
4 responses so far ↓
doug newhouse // February 19, 2008 at 5:11 pm |
I would go with high grade intermediate non US denominated bond fund—can’t trust the US currency—doug
Kaleberg // February 19, 2008 at 6:12 pm |
Basically interest rates are too low. Right now money market accounts are still paying something, but as soon as this goes negative expect the market to take off like in the early 90s.
rhbee // February 20, 2008 at 5:20 pm |
You fellows are still thinking that it’s about “getting rich” when the whole message of this collapse is that that is the cause of this disaster.
It all comes down to the money « Finance is Fun // February 28, 2008 at 8:54 am |
[...] American savings accounts, CD and Money Markets according to an industry chart shown last week on Jon Taplin’s blog. Yesterday, the fed continued the fall when Chairman Ben Bernanke described the economy as a no [...]