This has been covered in length, and 100% cash, with some money in gold is the preferred option now, due to the upcoming recession.
Read the archives, search for key words Fleck (or Fleckenstein), cash or gold or stock market or Zeal (commodities trading service well loved by many of us) or Treasury.
We’ve had many threads about how to hold cash: CDs, Treasury, euros, swiss francs, as many of us are concerned about the falling US dollar, and how much further it might fall when more housing loans go bad and banks and GSEs go under. Nobody here has any answers.
Read the bubble blogger in the link at right, TheBigPicture.
I went 95% cash in March, in anticipation of a stock market correction that I knew I wouldn’t be able to time. The current uerber-bull rally is going to fizzle out soon enough. Just wait for a few more bad housing reports, lender shake-downs, and poor retailer reports, and the stock market is going to start its long climb down. I am expecting the stock market to fall 30% at least over the next year. When we’re in the middle of the recession, maybe next spring, I’ll get back into stocks. I am only speaking for myself.
