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View Diary: The Euro Crisis by the numbers (165 comments)

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  •  Where do I 'safe haven' my little cash stash? (6+ / 0-)

    Having put my 401k into money market funds before the big crash, I've felt a little smug as the stock market has fallen and fallen and fallen. Yet I don't feel that my modest retirement funds are safe, let alone doing what capital should be doing in a capitalistic system, ie accruing value.

    What's a little guy like me to do? Any ideas, anyone?

    •  This is exactly my question. Apart from pulling (1+ / 0-)
      Recommended by:

      everything out of the market and parking it in cash, what is safe to invest in?

      That's one more thing to add to my long list of small problems. --my son, age 10

      by concernedamerican on Sun Nov 27, 2011 at 12:35:54 PM PST

      [ Parent ]

    •  A couple years ago I would have said commodities (7+ / 0-)

      Such as gold.  But nowadays I have a hard time justifying it since it does appear commodities have little room to grow and a LOT of potential risk at their current prices.

      Depends on your age. If you're near retirement age money markets might be your only dafe bet, sad to say.  I once bought into the idea that was common in the U.S. that said "long-term you cannot lose investing in stocks."  From the end of the depression until the late-90's that idea did seem to be true.  During that era investing in equity did get you consistently very good returns, often >7 or 8% per year annualized.  Since the late 1990's that strategy not only didn't get you solid returns, it probably lost you money and killed your retirement.  This is the new reality - the U.S. and Europe aren't going to see much, if any real growth anytime soon.

      •  Make sure your account is FDIC (2+ / 0-)
        Recommended by:
        KJG52, ChadmanFL

        Not a multinational, look up the score on bankrate.

        Everbank, an online bank, has CDs in foreign currencies that are insured and pay low interest, you might try the Singapore or Norwegian currencies.  

        Canadian dollar may also appreciate.  I haven't looked at their banks because they're not FDIC insured for us and I hear that some of them have followed us down the derivative path.  

        Some foreign banks may be safer than American banks, such as Australia and Singapore.  Wait for Aussie dollar to come down before you invest there.  Some Australian savings rates are over 5% and their accounts are insured up to 1 million.  (Of course, you'll verify all this info before taking my free advice, I hope.)

        Swiss big banks are heavily invested in Eastern Europe, not good news, but smaller kantonal banks are good;  the trouble is low or no interest and high minimum deposits.

        Some banks no longer want American customers because the reporting requirements are onerous.  You must make sure to notify the US govt of your account.  In general, look for banks with strong balance sheets and local exposure.

        When the dust settles there will be opportunities to buy solid American companies that pay good dividends.  At least that's my hope.

    •  Buy a place to live in a state with no property (4+ / 0-)
      Recommended by:
      ilex, gjohnsit, KJG52, Odysseus

      tax that is a watershed with no overlapping frackable shales and a well, pay it off entirely, and plant fruit trees, berry bushes and learn to garden and do your own electric and plumbing?  Oh, and get solar panels?  The only folks I see doing well are those who are self-sufficient and 'off the grid' as much as possible.

      It's time for communes to make a comeback.  Too bad I don't think you can 'become' Amish, I think you have to be born to it.

      My miniscule cash stash is likewise currently in money markets, and I've got no better place for it either.

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