Best place to park cash for intermediate periods?

Discussion in 'Trading' started by HuggieBear, May 22, 2010.

  1. Lets say one was to pursue a trading strategy that might keep them invested only 70% of the time, with decently long stretches where significant sums of cash would not be actively put to work. Further, lets assume these inactive periods are generally during market downturns or during periods of stock weakness.

    What is the most productive way to apply that cash? Leaving it in a MM fund is about the same as staying in cash, so I'm wondering if there might be a more productive use for it. Maybe a high grade corporate bond etf? Or a gov bond ETF? At least with those one could collect the divvys

    This would seem to be a no-brainer but during the financial crisis it seemed like everything got murdered, bonds included.
  2. Good luck. This economy does not reward cash.
  3. i use ally bank. they have no penalty cd's. not much but better than leaving it in ib. another plus is it puts your cash under the fdic umbrella.
  4. I should have added that I want the cash to be fairly liquid. I will be moving it in and out of active trading strategies, but there will be long but undefined periods where it is uninvested.
  5. Retief


    Use the cash to buy inverse ETF's during market downturns or periods of stock weakness.
  6. I am setting aside 25% of my portfolio for swing trading on the downside. I know from experience that can be volatile. I plan to put about 25%-75% in safer investments during confirmed market weakness (which may mean simple cash if i cant determine a better option).
  7. Best post ever.
  8. lindq


    Worst post ever.

    Like anyone knows when a downturn is going to turn into a rally, and you're stuck holding an inverse ETF?

    Impossible to time the market.

  9. iprph90


    i think i have solved it.
    why not just buy an inverse etf that is inverse to the original inverse etf.
    i think that would work out just fine. then again, we don't know what we don't know:D
  10. I knew i could turn to ETers for some solid advice on this matter.

    I thought it was a pretty simple question...i would think there would be one of the bond etfs that would make sense in this situation, rather than straight cash.

    Suppose i better go somewhere and ask someone who knows something about bonds then.... :cool:
    #10     May 23, 2010