Where to Park Brokerage Account Cash?

[uptickk]

I am trying to get ideas of where to park my brokerage account cash in order to squeeze out a little more return? I am assuming most have it in t-bills resulting in probably the smallest haircut but thought I would ask.

Thanks in advance.

 

[rickf]

Since there's not much out there I want to own longterm at these prices / macro conditions, I'm hoarding a big chunk of cash and starting to park it in short- or intermediate-term bond funds or a few CEFs based on IG bonds overseas until I need it.

 

[FrankSlaughtery]

if i had a nickel for every time i cautioned someone here on et against reaching for yield for parked cash i'd have a lot of nickels. does anyone remember a few years ago when people tried this and blew up reaching for another 25 bps? rates are low - it is what it is and there's nothing we can do about it w/o increasing risk to an unacceptable amount for cash.

cef's can and do get hammered during market selloffs b/c they go below nav. can you imagine losing 10% overnight in what you thought was an equivalent of a money market fund? making another 100 bps w/ the prospect of losing multiples of that for a cash account is not a good trade. just put the cash in an fdic insured account and be done w/ it.

 

[gkishot]

Short term municipal bonds: shm.

 

[LeeD]

Quote from FrankSlaughtery:

if i had a nickel for every time i cautioned someone here on et against reaching for yield for parked cash i'd have a lot of nickels.

FrankSlaughtery is right (though I dispice his or her name). In the current low-rate environment your best return is the value of your cash preserved.

So, you either choose investments where the ownership is in your name (in case the broker goes bankrupt) or you go for investments that beat the global inflation trend such as gold bullions.

 

[rickf]

Quote from LeeD:

FrankSlaughtery is right (though I dispice his or her name). In the current low-rate environment your best return is the value of your cash preserved.

So, you either choose investments where the ownership is in your name (in case the broker goes bankrupt) or you go for investments that beat the global inflation trend such as gold bullions.

I never said what I was doing was risk-free or the equivalent of making a bank deposit. You still need to watch things -- but rather than earn .000000001 at Bank of Serta (or Sealy) I'll take 2 or 3 percent on it with slightly more elevated risk.

 

[Illum]

"rates are low - it is what it is and there's nothing we can do about it"

End of story basically

 

[zdreg]

Quote from rickf:

I never said what I was doing was risk-free or the equivalent of making a bank deposit. You still need to watch things -- but rather than earn .000000001 at Bank of Serta (or Sealy) I'll take 2 or 3 percent on it with slightly more elevated risk.

what qualifies you to measure risk?

 

[rickf]

Quote from zdreg:

what qualifies you to measure risk?

My own eyes, ears, research, and assessment of the markets at any given time.

 

[zdreg]

Quote from rickf:

My own eyes, ears, research, and assessment of the markets at any given time.

any investment that purports itself to be nearly riskless and pays 2 or 3%above market rate is a high risk investment. you are obviously no mike milken.