Pseudo OT: Len and others who transition out of VMC or the market and into "cash"
As a Federal employee, the lion share of my investments are in the Thrift Savings Plan and a varying distribution of equities vs. bonds. I do have a decent sized IRA that has been almost exclusively index funds and VMC since the mid-90s. I don't recall a discussion on this board, although I may have missed it, for where VMCers invest their cash and bond when they choose to lighten their equities. Over the last couple of months I have been slowly liquidating some equities into a money market fund. Last month I thought it might be worthwile to invest a portion in GNMAs to take advantage of any short term reductions in interest rates. I know my question is completely unsofisticated, but I would be interested in approaches other VMCers take with their cash and bond holdings for maximum "safe" returns when they feel the market is turning or stagnant.
I do agree there are always good investments if you are a super sleuth like Bobwins or hweb, but if PSL has proven anything, it proves a number of us are middle of the pack at finding the great bargains and the VMC middle of the pack gets pounded in most downturns. Anyway, it is something I have been considering alot lately and thought, what better forum to ask for opinions.
Len, if this is inappropriate for this board, let me know where you think it would best be discussed. I started to put in on VMC, but decided that was not appropriate.
Thanks,
Mat
AI
