Buying next year, what to do with down payment money?

[jimmyle]

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,

[(former)FormerSanDiegan]

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).

[(former)FormerSanDiegan]

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).

[(former)FormerSanDiegan]

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).

[(former)FormerSanDiegan]

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).

[(former)FormerSanDiegan]

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).

[EconProf]

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.

[EconProf]

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.

[EconProf]

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.

[EconProf]

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.

[EconProf]

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.

[EconProf]

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.

[pk92108]

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..

[pk92108]

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..

[pk92108]

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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