This question is for Full Time Trader's ONLY. Now that Fed has dropped rates, Where do you put your cash for best returns? I am a full time trader looking for a place to get good returns on cash without worrying about bank going under. Looking at Everbank, WTDirect, etc. Thanks.
Take 50% of cash put in government issues. 50% back into your trading program. (if you are a believer)
Thanks seadog. Gov issues might be a perfect solution. As long as I avoid the IOUs being paid by the state fo California. (LOL). thanks again!
hadtough life, you may have a legitimate point. If you are suggesting that I TRADE 100% of all of my investable assets with no money management rules in place, this is actually a legitimate argument. However, I decided it would be prudent to keep some cash on the side. That way if I ever blow out, there is a plan B. Thanks for your input.
Debt Certificates aka Treasurites. If you want higher returns buy foreign government bonds (denominated in EUR, NZD, AUD, etc.) Of course, then you incur currency risk if you live in the U.S.
I REALLY like the Foreign Gov Bonds suggestion. Although there are inherent risks, it can also be a hedge which is exactly what I'm looking for. Thank you!
Exactly. If done correctly, it can be an excellent hedge while at the same time be a fairly low risk interest gaining vehicle. Especially in what could become a ZIRP world, any long term certificates could grow nicely in value. However, as always, if you are only interested in the interest, hold short term certs which are less volatile. Stay away from corporate bonds unless you know what you are doing (AAA means very little these days). Of course, if you live and only do business in the U.S. (and ultimately spend your money in the U.S.) you will have to incur currency risk, unless as you mentioned you also treat your investment as a currency hedge.
a trader would put cash to increase buying power or leverage. duh like any business. increase capital
Ive been with Everbank for Two Years. They have great short term CDs that are "Baskets" of Foreign Currenies". Great bank and the only one like it in the US. And I would have to agree. If your a full time trader why are you sticking your cash in EverBank? Why in the hell are you not keeping it in your trading account (Holding Firm/Clearing Firm) for more buying power? Full time trader use their cash intraday. If you have a blow out fund, Everbank is an excellent hedge against you typical "Liquid" product.
Everbank money markets are still yielding something(2.5-3% I belive) their 'worldmarkets' for fx is pretty much useless since they pay almost no interest. The correct answer to this question is to take advantage of the credit crisis and search for corporate bonds with big yields that are unlikely to default, but it does take some time and it hurts your liquidity