Market Update
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.
