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You're never going to get a good interest rate in money markets. Sure, safe havens are looking good over the past 12 months - but the stock market is going to
by johnrob 18y ago
You're never going to get a good interest rate in money markets. Sure, safe havens are looking good over the past 12 months - but the stock market is going to kill them in the long run.
Some people try to time the market, shifting their assets between safe and risky. However, doing this involves both the labor of research and the risk of being wrong. You're probably best off in the long term if you just stay with the market. Unless you want to spend all of your time doing financial research, in which case you can probably increase your std deviation (but not your expected return).
- mynameishere 18y agoTiming the market isn't that hard sometimes. Look for the hockey stick and avoid it. Say what you will about money market funds, but when you actually see the widespread bloodbath going on, http://vanguard.com/us/FundsByName http://vanguard.com/us/FundsByName ...that +2.0 percent return is pretty sweet next to 75 different funds' 20 percent losses. Cuban himself evidentally recommends CDs...
- antiismist 18y agoHe doesn't recommend CDs for 401(k)s though. He recommends it because he believes it is important to have quick access to cash in order to take advantage of opportunities.