Where do you invest your cash overnight when not trading?

M

misterno

I am new to this game and I am not trading much.

My broker gives me 0.01% for money market account

But, I am looking at 1 month treasury bill rate it is 2%

So I am thinking since it is maturing in 1 month, there should not be much price volatility and the gain should be somewhat predictable.

Am I right? Do you have any suggestions?
 
Quote from misterno:

I am new to this game and I am not trading much.

My broker gives me 0.01% for money market account

But, I am looking at 1 month treasury bill rate it is 2%

So I am thinking since it is maturing in 1 month, there should not be much price volatility and the gain should be somewhat predictable.

Am I right? Do you have any suggestions?
More...

One month T-bills are not 2%. I believe they are closer to .04%. Fed funds are only .18%. Not worth moving around your money when rate are so low.

http://www.treasurydirect.gov/RI/OFBills
 
Quote from misterno:

I am new to this game and I am not trading much.

My broker gives me 0.01% for money market account

But, I am looking at 1 month treasury bill rate it is 2%

So I am thinking since it is maturing in 1 month, there should not be much price volatility and the gain should be somewhat predictable.

Am I right? Do you have any suggestions?
More...

Yes, the 1 mo tbill is @ 2%, so if you just buy those every month you will earn 24%/yr. Which is a great return, so why bother even trading?

Really?

When CDs, savings, checking, etc. are paying below 1% for the YEAR, you think a 1 MONTH tbill is at 2%?
 
Until short term rates double (or may be triple) from where they are now, only be concerned with safety ... not rate. Unless you are dealing in very large sums the differences right now are truly irrelevant.
 
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