The difference between Canada vs USA hikes is massive. Canada, UK, Australia, and Sweden (maybe a few more) use 3 year ARMs loans for housing. Thus, any hikes are a quick impact on millions of their citizens leading to some cooling in their markets. The US market is mostly 15-30 year fixed thus the impact on rate hikes will take a much longer time to cause changes in consumer behavior. IT will have a bigger impact on the commercial real estate and consumer credit side.
forums
Off-Topic Stock Market & Crypto Discussion
- Thread starter Bird4um
- Start date
Advertisement
TheEye
Recruiting is about get even better.
- Joined
- Feb 12, 2013
- Messages
- 11,680
Never invested in IPOs and certainly not pre. Amazon is a good idea to scope in the meantime, though. A lot of forward thinking here. Thanks.
When the feds cracked down after the dot com bubble, they effectively made going public overly painful, and the pre-ipo industry was born. Essentially, the Feds, in their infinite wisdom, transferred a lot of the vig from retail investors buying shares at the IPO to wealthy individuals investing Pre IPO.
Thats a long way of saying that its higher risk, but pre-ipo funds can make you a lot of money.
Need to be a QP and will have a high minimum.
Maybe I should have taken offline. I only know of friends investing in early stage companies. Angel to Series A/B.
we can catch up tomorrow.
Why stop at an emergency fund?
Advertisement
TheEye
Recruiting is about get even better.
- Joined
- Feb 12, 2013
- Messages
- 11,680
The only thing is liquidity, but considering your other options either yield nothing or are subject to risk, I think now may be the best time in history to buy 6 month bonds b
Not sure I'd say history as every 6-12 month period before a recession is a good bond-buying time.
I'm still holding cash as the 5% return is likely to move to 10% in 1-2 months AND I may remain in cash if I find better opportunities (real estate, stocks, private companies).
- Joined
- Oct 4, 2013
- Messages
- 7,084
If you move into 6 month bonds through a brokerage and it bumps up to 10%, could you in theory sell the bonds and re-buy?
Maybe others can answer this question as I'm 100% cash, private start-ups, and real estate at this point. Bonds aren't a bad investment but I haven't researched if I can legally hold bonds for my cash reserve for real estate.
- Joined
- Oct 4, 2013
- Messages
- 7,084
Part of my focus on the emergency fund piece is this is not money that I would put in the market anyways, so the liquidity aspect is not too much of a factor. As is, it has been sitting in my bank's checking/savings accounts letting them collect interest on it instead of me.
Typically has to be in cash
Borrow from banks but have your cash in your brokerage account, even regular sweeps are approaching 4.5%
Advertisement
Volatility to remain high, from today's WSJ:
Mr. Powell opened the door to a larger, half-percentage-point interest-rate increase this month and said officials are likely to raise rates higher than they previously expected to battle inflation in a stronger economy. In making their next rate decision, Mr. Powell suggested officials would pay close attention to Friday’s government report on February hiring and next week’s report on inflation.
Mr. Powell opened the door to a larger, half-percentage-point interest-rate increase this month and said officials are likely to raise rates higher than they previously expected to battle inflation in a stronger economy. In making their next rate decision, Mr. Powell suggested officials would pay close attention to Friday’s government report on February hiring and next week’s report on inflation.
- Joined
- Dec 19, 2014
- Messages
- 49,086
Where does your cash get a 5% return?
MDOcane
here we go again...
- Joined
- Jul 1, 2013
- Messages
- 1,513
if you're doing that you should look at the brokered CDs. they're yielding over 5% on anything 6months+ & short term you can get 3 month CD for 4.8%. as rates keep going up, so will those CDs
My cash isn't returning anything. My point was 5% short-term bond returns are likely to jump to 10% in 1-2 months. Pardon the confusion.
I believe there are a few banks providing 4% on savings accounts but as SpikeUM pointed out, keeping anything more than 250k in a bank is not smart. Heck, I only keep around 1 month of rent in 4 different bank accounts and hope to spread that to 6 soon. In short, the volatility in the market could cause some banks to fail in the coming year(s). I'd keep your eyes on any that heavy in commercial real estate.