Federal Reserve adds $70 BILLION in Liquidity to the Markets Today

Carol · 09-15-2008, 07:05 PM

I'm moving this down in the thread for those who missed the edit further up.

Okay, just spoke with my son in England and here is his take on the current financial situation.

Cash is good short term as this continues to unravel, safety is the key. Longer-term, go with exchange traded funds (ETF) with low expense rations to give to access the S&P 500. SPDRs are a specific type of ETF. Currently, it's difficult to predict the bottom... wait a little while. AIG is close to going bust as well; many companies will have losses regarding this bankruptcy. The next six months will be a rough ride, not until next spring would likely be a good time to re-invest. For some folks (in England) it would be best to just pay off their mortgage because interest is not tax deductible there. Not so in the US. One also has to look at how much liquidity one needs.

Putting money into any sort of retirement type plans is good. Even within some sort of IRA one can usually buy the SP 500 ETF, which is very liquid, relatively cheap to trade, low commissions, and gives exposure to a highly diversified index.

Long term - one wants to be in the equity market... think 20 years or more as this will also minimizes ones expense ratio and builds equity.

Gold is now in the $700 range and may be a good investment but is very difficult to predict short-term investment prices and value.

Cash is good. Particularly for the next 6 months as the equity market can still go down quite a bit more. Dollar has rallied against the Euro. The Euro is now predicted to go down.

This is good for the dollar.

09-15-2008, 07:05 PM	#11
Carol Project Avalon Hero Join Date: Sep 2008 Location: Big Island, Hawaii Posts: 2,008	Re: Federal Reserve adds $70 BILLION in Liquidity to the Markets Today I'm moving this down in the thread for those who missed the edit further up. Okay, just spoke with my son in England and here is his take on the current financial situation. Cash is good short term as this continues to unravel, safety is the key. Longer-term, go with exchange traded funds (ETF) with low expense rations to give to access the S&P 500. SPDRs are a specific type of ETF. Currently, it's difficult to predict the bottom... wait a little while. AIG is close to going bust as well; many companies will have losses regarding this bankruptcy. The next six months will be a rough ride, not until next spring would likely be a good time to re-invest. For some folks (in England) it would be best to just pay off their mortgage because interest is not tax deductible there. Not so in the US. One also has to look at how much liquidity one needs. Putting money into any sort of retirement type plans is good. Even within some sort of IRA one can usually buy the SP 500 ETF, which is very liquid, relatively cheap to trade, low commissions, and gives exposure to a highly diversified index. Long term - one wants to be in the equity market... think 20 years or more as this will also minimizes ones expense ratio and builds equity. Gold is now in the $700 range and may be a good investment but is very difficult to predict short-term investment prices and value. Cash is good. Particularly for the next 6 months as the equity market can still go down quite a bit more. Dollar has rallied against the Euro. The Euro is now predicted to go down. This is good for the dollar.