Very safe place to park some cash

Discussion in 'Trading' started by esc_trader, Nov 25, 2020.

  1. Snuskpelle

    Snuskpelle

    Depends what we're talking about. Small correction incoming any day now, completely agree. Big one > 10%, might wait a while.
     
    #21     Nov 26, 2020
  2. Real Money

    Real Money

    Not an expert, but I would think there is some kind of structured product theme based around economically advantaged hedges for the supermajors.

    You buy the big dividend stocks or a basket of them, and then hedge the risk with energy futures. The div is very high, and since you are hedging with energy derivatives on a correlation basis, the hedge is inexpensive to carry.

    Maybe one of you quant jocks can poke some holes in that idea.
     
    #22     Nov 26, 2020
  3. Lol 3 or 4 percent? That's 2 percent less than long term equity returns. You should be happy if you only lose inflation. Park it in a well capitalized bank. Period.

     
    Last edited: Nov 26, 2020
    #23     Nov 26, 2020
  4. Overpriced at the moment. You most likely gonna lose money on that investment.

     
    #24     Nov 26, 2020
  5. Buying a home at 600k or 700k that should only be worth 400k?not a great investment in my book. Either you bought a long time ago or you overpay.

     
    #25     Nov 26, 2020
  6. The psychologically hardest investment right now but probably the only one that will make money over the next 10 years.

     
    #26     Nov 26, 2020
    comagnum likes this.
  7. cesfx

    cesfx

    I think 3% can be achieved with a low cost leaps collar strategy on some high dividend stock. This is if the dividend doesn't get trimmed much during the year and the cost of the collar is about 3% less than the yeld.
    Someone mentioned Sunoco, I remember looking at payoff of XOM collar to trap some dividend.
    I haven't done it myself as I aim for more than 5%, but please let me know if I am off with fairies.
     
    #27     Nov 26, 2020
  8. Specterx

    Specterx

    The parabolic rally into September might have just been the first leg.
     
    #28     Nov 26, 2020
  9. 931

    931

    Im afraid historical yearly inflation is higher than 3-4%.
    Renting real estate would also be higher return.
     
    #29     Nov 26, 2020
  10. comagnum

    comagnum

    true - it was the first leg for the move the Russell 2000 made which was the largest in it's history - it was long over due since it lagged the NDX100 for many years.
     
    #30     Nov 26, 2020