Where does one put what's left of their money in 2011?

[mmonk]

When markets are overvalued and price to earnings ratios are grossly distorted, I usually keep my money in municipal and state bond funds. With the acceleration of the Reaganomic agenda to come and the Republican desire to starve states further when they are already teetering on bankruptcy, where is the flight to safety now? The real estate market and it's mortgage funding apparatus was devastated in the bubble and the speculative deregulated toxic asset swaps is no where to go. Stocks may take off but how do you spread risk with the next speculation bubble? Any ideas?

[hobbit709]

1. what's left of my money will fit in a small box.

[boston bean]

2. mine will fit in a baby food jar.......

[mmonk]

3. Mine has debt against it because of less income,

therefore, it is becoming a time bomb for me and my family.

[jwirr]

27. I stopped all my direct deposits and use cash & money orders when

I must. I am afraid to put it anywhere because I was told that even when it is an entitlement they go after it. And banks who know they are not supposed to let anyone have the money from entitlements turn their backs. So to keep them away from what little I have so I can keep from being homeless I use the method above. Social Security and SSI do not like it because it costs them more to mail the checks but they will do it. Hope this helps.

[quaker bill]

4. In Glenbeckistan

they are recommending precious metals and dried foods. I would pass on the metals at this point, a technical read of the market indicates the gold to silver ratio is nearing a speculative peak, so, I conclude that the time to buy was a couple of years ago, and the time to sell is here or will be shortly. The inherent supply of these metals is too large to support pricing at these levels over the long haul. Dried foods have a shelf life, so I would not go there.

Of my modest savings, I am about 50 percent in equities and 50 percent in insured cash. I made about 13 percent in equities last year, and the cash is in a highly rated and insured credit union.

[mmonk]

5. Because of debt against my portfolio, I cannot get to 50% cash.

[DainBramaged]

6. Mattress, leave the last S off for savings

[mmonk]

7. I'm cash poor and can't cash out without large losses.

[DainBramaged]

11. As are most of us

Retirement fund, HA, more like cheese and crackers fund.

[spanone]

8. stock market was up 11% in 2010....

[mmonk]

9. Agreed it was up. But that was after the blood letting. Therefore,

beyond a year window, it hasn't made up my losses. It may continue upward, but a balanced portfolio that produces some cash rather than paper profits only and safer approach seems unlikely.

[Statistical]

16. What losses?

Are you valuing your portfolio from the peak as "losses" or valuing from your principal?

Example:
You buy a house for $100K. The value rises to $250K. Then it falls to $150K.
Do you have a gain of $50K or a loss of $100K?

[mmonk]

21. Some were losses, particularly in the financial services and banking sector.

[Statistical]

24. However in aggregate the current value of your investments are worth more than your principal right?

Thus there is no loss.

[mmonk]

26. It has been going down at the wrong time of my life.

Right now I'm looking to holding on and income to counter the interest.

[DCBob]

10. Find a good investment manager that you trust and let him/her help you..

There are ways to protect what money we have against the various economic scenarios that could play out over the next few years. I think its worth the fee they charge... which is usually around .5-1 percent, I believe.

[sarcasmo]

12. I would make sure the house is paid off before investing anything else.

[MilesColtrane]

13. Diversify

Don't put your money in any one investment.

Put it in all of them.

[Statistical]

14. There are still some good stocks on a valuation basis.

The overall P/E on S&P is skewed by a small % of ultra high fliers. Also P/E of 12 can hardly be considered excessive.



I like high dividend paying stocks like the master limited partnership BWP. They are a pipeline company so aren't subject to the price of natural gas just the volume. GS is an unbeatable bank. Buying shares in BRK gets you a piece of Warren Buffet action.

For 2011 I also like the XLE. Picking the winner in energy space can be tough and there is a lot of volatility. XLE contains energy suppliers, but also material makers, drillers, pipeline builders, and exploration companies.

None of that should be taken as investment advice but rather to indicate that there are value companies.

Also if you like muni-bonds why not look at higher grade corporate debt? A final option would be looking at TIPS with a 10 year maturity. You money is inflation protected and currently you will earn about 1% (plus annualized inflation).

[TBF]

15. I have a good lock box, others trust mattresses. Whatever you do

don't give it to Bank of America.

[slackmaster]

17. Plastics

[pinboy3niner]

18. !

:rofl:

:fistbump:

[RedCloud]

19. Put in Mayan temples and beg forgiveness

[mmonk]

25. If it works.

;-)

[robcon]

20. Stock market, growth mutual funds

Those are the ones that grow fastest when the economy recovers.

[bluestate10]

22. You may want to look at funds that do social investing.

Calvert is one, but some others have come along during the last decade and a half. You money is invested in companies that have corporate policies that mirror your values.

[timo]

23. sad to hear

I had a really good year overall, despite all the bad economy gloom, we finished the year in god shape, I truly have been blessed, I wish all of you a fantastic 2011.

[taught_me_patience]

28. Small cap equities

They are gonna rock and roll this year! Real estate is also bottoming out this year.