It’s no secret that the markets are frothy right now… Stocks are at an all-time high, real estate is booming again, and there are more and more investors coming out of the woodwork seemingly everyday with money to invest. Further, interest rates are at rock bottom, so even if you wanted to sit out the remainder of this bull run, putting aside cash in a traditional savings account might not be the best move either — inflation will only continue to erode away your purchasing power…
So, we are faced with a conundrum aren’t we? Do we keep investing in the “expensive” market, or patiently wait for better opportunities, while accepting the fact that our idle cash is sitting stagnant, or worse, losing value.
Perhaps, there is a better alternative? At this time, I would like to ask readers:
“Where are you stashing the cash?”
For those who are no longer actively investing in the markets, where are you parking your excess funds as you wait for a better entry point to get back into the game?
- Savings Account?
- Money Market?
- Precious metals?
- “High yielding” 0.75% APY alternatives like SmartyPig?
- Under the matress?
In addition, is anyone still finding opportunities that you consider “low risk” even today?
- Hard money loans (HML)/Private Lending?
- Leding Club/Prosper?
- Buy and Hold properties?
In my own situation, I don’t have a ton of cash at the moment, so for now I’m just parking it in a standard savings account. Since I don’t plan on actively investing in the near future (unless the market crumbles again), I will most likely need to figure out a safe haven to stash funds while I wait for another buyer’s market to commence. And just like everyone else, I would like to earn a “decent” yield while I await for better opportunities to strike again.
Would love to hear your thoughts on this!