Monday, January 30, 2012
Watching this market close in on upside targets is like watching a movie I have seen before. Some readers want to know where to find dividend income now that the Fed has committed to low rates until 2014. Money market funds will not keep up with inflation. Bond funds look like they may begin a new bear trend sometime in 2012. Stock funds are too volatile to be considered cash or fixed income investments even though our core portfolio equity positions yield north of 10%. I think that means you need to consider stock market certificates or structured products (see our conservative portfolio in this newsletter). Try building a “cash ladder” of varying maturities to squeeze out the possibility of higher yields with maximum safety.