Although this thread should probably be "Strategy Investing", I'd appreciate any feedback as where to park some cash for the short term (6-12+ months) under the following conditions- No loss of capital Not actively traded If you lose any of this I'll cut your balls off :eek: My wife an I just sold our house and have a decent sum (+250K) of profit and we'd like to gain more than the "prevailing rate" from a "bank" type of investment. We're in no rush to buy a house again, as my opinion is that the housing market has nowhere to go but flat to down where we are (Northeast FL.) Any suggestions for a good vehicle(s) for capital preservation? Thanks in advance!
you're a clever one eyh, I'll give you a clue: everyone looks for the above average return with no capital loss. You want above average ? You'll have to take above average risk and that means getting YOUR balls potentially cut off (or at least shaven). Get a CD, or short term AAA bond for starters.
There are a lot of hedge funds out there, some do good arbitrage stuff for 2-3% a month pretty consistently. I would put it into a few of those. Spread it out.
While American banks are paying noting, there are many countries out there that remember pays 12-15% on shorttime fix deposit account like Turkey, indonesia,...that i am awere of. I have my money in Iranian bank and give me 20% anually on 5 years fix deposit, and can withdraw it for 15% for 12 months.Inflation is so high in these countries, that's why they easly can pay these much. For me inflation does not exist, because i don't live and spend my money there. Do a search on internet to find out which countries are still paying high interst / high inflation/No money devaluation and will never be in war mode in future. I am sure there are lote of them.
im buying some of the closed end bond funds that trade on the nyse that have fallen to a discount to nav for income. im picking ones that hold mostly government bonds for safety. you can get 6-8% yield on these and if you diversify you can further reduce risk. warning though, if the bond market crashes these could fall 10% further. acg or bkt are two that i have purchased recently that you could look at. do your own research.
Nana Trader, you incur foreign exchange risks. If inflation is high in Iran, that means the currency is weak, whatever you make off the interest rate you lose in converting to dollars, unless you invest dollars (which is doubtful).
Then there's always GM Bank, Ford Bank, Caterpillar Bank and GE Bank where higher interest rates may be earned. http://www.courier-journal.com/business/news2003/08/06/biz-3-yield06-3266.html
Iranian currency is getting stronger each last seven year. Iranian rials geting stronger in ralation to USD dollor. If a country pays high interest, but no inflation there, soon their currency will devalue and economy will weaken. Prime example were Thailand untill 2001. But this is not the case with Iran.
Hedge funds! Lol. That's rich indeed! Okay, you're in the industry yourself, but come on man, NOBODY considers hedge funds a safe place to park cash.