Home Forums Hunting & Shooting Hunter's Campfire Out of stocks - Into cash

Looking to step out of stocks and into cash or some other simple, stable medium for the next few months until things settle down.

Last time I felt I should do this was maybe in 09. I foolishly convinced myself to sit tight, things would be alright. Then the bottom fell out and we lost about a third of our investment value.

Anyone else looking to sell for the time being?

If so, what are you going to do in the interim?

I called our retirement investment broker and told her I wanted to cash out. Didn't get to talk with her to get the order done but will talk with her tomorrow morning.

Given the fact that the most politically convenient way to make a monster debt go away is to print money and inflate the currency, the last thing I want my assets in is dollars. Tangible productive assets would be better, IMO.

I am talking about a time period of a few months. I have no doubt there is and will be more inflation. But the reality is, inflation can not decrease the value of my holdings near as quickly as a large plunge in the market can in a timeframe of say, 3 - 6 months.

Mind you, in my original post I asked what other options there might be out there to put the money into. Don't tell me PMs. PMs are very inflated now and could definitely continue to increase. But they are so high now, the downside is definitely bigger than the upside in the time-frame I am speaking of.

Other options? I'm listening.

Also, remember, the investments I am talking about here are in a retirement account so I am somewhat limited in that regard.

Never been a big fan of timin the market , per se.

I'm normally a long stretch, index fund equities and money allocated by modern portfolio theory type.

I am a bit spooked right now though.

Not a timer either. Like I said, the last time I had a notion to sell and get in cash until things shook out, I convinced myself to hold long, "it will be alright". Well, my holdings dropped in value by about 33%.

So now, we are facing some uncertain near-term economic hurdles and I think things will get a bit tough in the equities market for a while.

So, in other words, as you said, I am a bit spooked about what the markets may be facing.

If this were straight investment money, I might be tempted to buy more irrigated land here in the valley. As it is, I may still borrow money to do that later this year or perhaps early next.

Haven't you recovered all of that lost 33%, and then some, by simply riding it out since 2009?

If you're looking at 3-6 months, I can't see that it would matter what you actually did with your money once pulled out of the stock market--either a money market fund, a bank savings account, or just stick it all under the mattress.

I did that about 4 years ago.. I wouldn't own a single share of stock now...

Every financial institution in the country has gone to leveraged derivatives in order to turn a profit and stay alive. This includes brokers, banks, insurance companies, pension funds, etc., etc. This is due to the FED going to zero interest and the rules that they have to follow. If one domino falls, it cascades accross not only the United States, but the world. Many are investing in Eurobonds - Italy and Spain... think about that.

I am taking my funds out of the 401K and my wife's retirement fund and buying PM's. It's that or buy land, phystical commodities, etc. - something that will survive the coming economic colapse. The dollar will become worthless overnight...

Here's a link to a youtube video series that explains what's going on - very long and there's some preaching but a layman's explanation of our current situation - very good: http://www.youtube.com/watch?v=7dFVFJ0iRRA&feature=player_embedded

Tarkio,

I was lucky and converted my mutual funds to cash over a month ago and captured the gains from the recent market run up. The cash will sit in money market funds until at least January. My plan is to dollar average back in starting next year.

Rick

I can tell you what I'm doing. I've never been in the stock market. When I was raising a family I never had any money to invest and now I don't want to play the market.

I'm debt free, live very modestly and what cash I have I buy goods that will endure. I live in the country the nearest big town is Montgomery, getting back into gardening. I plan on buying a grain mill, corn sheller in the very near future. I can things that I grow in my garden. I go to Sam's fairly regularly and buy things like powdered milk, coffee, rice, pinto beans and stuff like that. I just got back and I'll kiss your foot if I didn't forget cooking oil. Dadgummit.

I'll continue to buy durable goods so long as the dollar will buy something. All the guvmint has to do is devalue the dollar and print new currency to put us back to zero.

What I wouldn't do:

Listen to a youtube video or some anonymous person on the internet. For all you know they are broke, buried in debt, and running purely on theory.

A little insurance in the form of appropriate puts might help.

True words.

Like anything, any input here is looked at critically and evaluated. Different viewpoints, even if they are wrong, often help to broaden one's perspective.

A stock's value is tied to its popularity, and that is about it. While it is true that the government could devalue our dollar, that process takes time. A stock can become devalued overnight for no rhyme or reason.

and thats whats always bugged me about putting much cash into it.....used to have some but some medical bills came up that needed paid and pulled it out...lucky timing cause it happened just before the last crash.....havent had enough cash since to put some back in...

In lost quite a bit after 2008 also.I got out when the DOW market hit 8000, and then got back in when it showed a definite rise.Then got out at 10,000. Several mutual funds I had tred to ride out that 2008 crash and they lost all I has invested with them in less than two months.
All my IRA money is in Money Markets now and non IRA in Municipal bonds.
Municipal Bonds usually only cost $5-$10 to buy and right now the best you can do is a little less than 4%. Bonds yielding 5% or more,you still pay a premium and that lowers the yield.However,if you are in the 25%+ tax bracket or higher, that yield goes up 2-3% as you pay no taxes on the interest you make.

Esepcially if you are close to retiremnt, convert to Money Markets until you figure out what you want to do.It's going to take 10 years to recover that investment you lost, if you ever do.
I found with most Mutual Funds,etc., that you only reap about 50% of the profits the manager makes as you pay a fee on the total amount you have invested and they take that fee out of your profits.The days of 20% return is long over.

Ex.Say you have $100000 invested and the market makes you 2% and your fee is 1%.

Good info. ^

My father in law was bitching about how much money he lost before retirement. I asked why he was invested in growth stocks at his age? He told me that wasn't the issue, the issue was the evil republicans that screwed him. haha

Well, I cashed out all the retirement accts today and they are into MMAs until someone somewhere shows some sound leadership that invokes confidence in the market.

Our broker had the standard party line about having done so well so far this year, long term steady investment is the key...yada yada yada.

I explained I understood that and just simply want to protect that gain for now until things settle out. May be next month, or early next year. We'll see.

The good news is, if you want back in you can just wait for a major downturn in the market again, and get more shares for your money.

"If this were straight investment money, I might be tempted to buy more irrigated land here in the valley. As it is, I may still borrow money to do that later this year or perhaps early next."

THIS is a smart move, IMO.