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  • August 12, 2008 at 8:26 AM #13577
    jimmyle
    Participant

    There is a good chance I am buying next year. I have some money for down payment and it is in two mutual funds right now. Basically 50% US stocks and the rest is foreign (mostly Asia and Europe). I have lost ~ $14K this year and I worry about losing more of the remaining money. Assuming that I am buying in Nov 2009. What do you think I should do with the mutual fund accounts? I have done some research but most CDs pay less than 3.5% for 1 year. I am thinking about Europac but is it wise to invest with them for a one year period? Or just keep the mutual funds where they are?

    Thanks,

    August 12, 2008 at 8:41 AM #256015
    (former)FormerSanDiegan
    Participant

    For that short a time frame, liquid cash is the only option in my book.
    The trend of dollar decline has stalled. Stocks, both US and foreign, can see wild swings over short periods of time. You can chose between + 3.5% guaranteed or something likely between + 20% or – 20% (but unknown).

    You choose.

    I would start picking exit points for stock. Get to the point where, if you lost 20-50% in your stocks that you could still implement your plan (or a related back-up plan).

    August 12, 2008 at 8:41 AM #256194
    (former)FormerSanDiegan
    Participant

    For that short a time frame, liquid cash is the only option in my book.
    The trend of dollar decline has stalled. Stocks, both US and foreign, can see wild swings over short periods of time. You can chose between + 3.5% guaranteed or something likely between + 20% or – 20% (but unknown).

    You choose.

    I would start picking exit points for stock. Get to the point where, if you lost 20-50% in your stocks that you could still implement your plan (or a related back-up plan).

    August 12, 2008 at 8:41 AM #256197
    (former)FormerSanDiegan
    Participant

    For that short a time frame, liquid cash is the only option in my book.
    The trend of dollar decline has stalled. Stocks, both US and foreign, can see wild swings over short periods of time. You can chose between + 3.5% guaranteed or something likely between + 20% or – 20% (but unknown).

    You choose.

    I would start picking exit points for stock. Get to the point where, if you lost 20-50% in your stocks that you could still implement your plan (or a related back-up plan).

    August 12, 2008 at 8:41 AM #256257
    (former)FormerSanDiegan
    Participant

    For that short a time frame, liquid cash is the only option in my book.
    The trend of dollar decline has stalled. Stocks, both US and foreign, can see wild swings over short periods of time. You can chose between + 3.5% guaranteed or something likely between + 20% or – 20% (but unknown).

    You choose.

    I would start picking exit points for stock. Get to the point where, if you lost 20-50% in your stocks that you could still implement your plan (or a related back-up plan).

    August 12, 2008 at 8:41 AM #256306
    (former)FormerSanDiegan
    Participant

    For that short a time frame, liquid cash is the only option in my book.
    The trend of dollar decline has stalled. Stocks, both US and foreign, can see wild swings over short periods of time. You can chose between + 3.5% guaranteed or something likely between + 20% or – 20% (but unknown).

    You choose.

    I would start picking exit points for stock. Get to the point where, if you lost 20-50% in your stocks that you could still implement your plan (or a related back-up plan).

    August 12, 2008 at 4:24 PM #256180
    EconProf
    Participant

    My condolences on your market losses. This market has humbled a lot of people lately, myself included. FWIW, even the pros are getting clobbered: Buffett, previously high-flying hedge funds, Carl Ichan, Calpers, etc.
    I’d stick to CDs, money market funds in safe institutions. Yes, you’ll be behind considering inflation and taxes, but that’s today’s environment.

    August 12, 2008 at 4:24 PM #256360
    EconProf
    Participant

    My condolences on your market losses. This market has humbled a lot of people lately, myself included. FWIW, even the pros are getting clobbered: Buffett, previously high-flying hedge funds, Carl Ichan, Calpers, etc.
    I’d stick to CDs, money market funds in safe institutions. Yes, you’ll be behind considering inflation and taxes, but that’s today’s environment.

    August 12, 2008 at 4:24 PM #256362
    EconProf
    Participant

    My condolences on your market losses. This market has humbled a lot of people lately, myself included. FWIW, even the pros are getting clobbered: Buffett, previously high-flying hedge funds, Carl Ichan, Calpers, etc.
    I’d stick to CDs, money market funds in safe institutions. Yes, you’ll be behind considering inflation and taxes, but that’s today’s environment.

    August 12, 2008 at 4:24 PM #256368
    EconProf
    Participant

    My condolences on your market losses. This market has humbled a lot of people lately, myself included. FWIW, even the pros are getting clobbered: Buffett, previously high-flying hedge funds, Carl Ichan, Calpers, etc.
    I’d stick to CDs, money market funds in safe institutions. Yes, you’ll be behind considering inflation and taxes, but that’s today’s environment.

    August 12, 2008 at 4:24 PM #256423
    EconProf
    Participant

    My condolences on your market losses. This market has humbled a lot of people lately, myself included. FWIW, even the pros are getting clobbered: Buffett, previously high-flying hedge funds, Carl Ichan, Calpers, etc.
    I’d stick to CDs, money market funds in safe institutions. Yes, you’ll be behind considering inflation and taxes, but that’s today’s environment.

    August 12, 2008 at 4:24 PM #256471
    EconProf
    Participant

    My condolences on your market losses. This market has humbled a lot of people lately, myself included. FWIW, even the pros are getting clobbered: Buffett, previously high-flying hedge funds, Carl Ichan, Calpers, etc.
    I’d stick to CDs, money market funds in safe institutions. Yes, you’ll be behind considering inflation and taxes, but that’s today’s environment.

    August 13, 2008 at 10:29 AM #256460
    pk92108
    Participant

    settle for the 3.5%…too many unknowns if you need the money in the short term…I am down around 150K if that makes you fell any better and I just have a garden variety mix of foreign/domestic mutual funds…nothing really aggressive..

    August 13, 2008 at 10:29 AM #256640
    pk92108
    Participant

    settle for the 3.5%…too many unknowns if you need the money in the short term…I am down around 150K if that makes you fell any better and I just have a garden variety mix of foreign/domestic mutual funds…nothing really aggressive..

    August 13, 2008 at 10:29 AM #256647
    pk92108
    Participant

    settle for the 3.5%…too many unknowns if you need the money in the short term…I am down around 150K if that makes you fell any better and I just have a garden variety mix of foreign/domestic mutual funds…nothing really aggressive..

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