I've been having a really hard time trying to figure out what to invest in lately. I've been running my usual stock screens, and the same “garbage” companies come up. There is a lot of volatility in the market right now, and the future of the economy is pretty uncertain.
So, what is my strategy of choice? Doing Nothing!
Doing Nothing is Hard
I have to admit that doing nothing is actually pretty hard to do. I have money ready to trade, and I could pull the trigger at any moment, but I hold back. This is where being an emotional investor can really hurt.
Given that nothing is appealing, where do you put your money? I am just keeping it in cash until something interesting comes along.
Options For Doing Nothing
There are some options for doing nothing:
– Brokerage Sweep Fund: Check out What is a Sweep Account and How Do I Use It?
– Money Market
– Short-Term CD
While each of these is very similar, you earn more interest at each step. A brokerage sweep fund usually pays next to nothing in interest. A money market does a little better, and finally, a CD does the best.
Remember, the risk of a CD is that you must commit your money for a period of time, or you lose the investment. This is a risk, because if an attractive investment comes along, your money is tied up.
Readers, what are you doing with your cash at the moment? Are you waiting to trade or are you happy with what you have? Any other vehicles to store your cash in?