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Money Market Reforms Force Advisers To Rethink Risk
This is how I played the low yield cash environment.
I closed out my money market and CD's years back after the yield's of each went next to nothing; and, I took up positions in a few short term bond funds with some of this money which is a part of my fixed income sleeve. You might say, that short term bond funds have now become high risk cash positions with me.
The low return on cash has effected my portfolio's overall return greatly as I use to be able to get a four to five percent retrun on my cash ... and, well, now next to nothing ... and cash usually makes up about 15% to 20% of my overall portfolio.
This has forced me to make some special spiff positions within the markets, form time-to-time, to help make some of my cash more productive. Thus far it has ... but, has not fully covered the prior yields of four to five percent once had. And, last year the spiffs were few and far between. I am still with the October 2014 Spiff with an average cost of 1905 on the S&P 500 Index. This puts this spiff thus far at about a 10.2% return. But, it would take a good number of these to cover the full four to five percent yield I was earning on all of my cash since these spiff positions are much smaller in size than my total cash position.
I am wondering what you might have done to deal with this low return on cash environment?
Comments
This is how I played the low yield cash environment.
I closed out my money market and CD's years back after the yield's of each went next to nothing; and, I took up positions in a few short term bond funds with some of this money which is a part of my fixed income sleeve. You might say, that short term bond funds have now become high risk cash positions with me.
The low return on cash has effected my portfolio's overall return greatly as I use to be able to get a four to five percent retrun on my cash ... and, well, now next to nothing ... and cash usually makes up about 15% to 20% of my overall portfolio.
This has forced me to make some special spiff positions within the markets, form time-to-time, to help make some of my cash more productive. Thus far it has ... but, has not fully covered the prior yields of four to five percent once had. And, last year the spiffs were few and far between. I am still with the October 2014 Spiff with an average cost of 1905 on the S&P 500 Index. This puts this spiff thus far at about a 10.2% return. But, it would take a good number of these to cover the full four to five percent yield I was earning on all of my cash since these spiff positions are much smaller in size than my total cash position.
I am wondering what you might have done to deal with this low return on cash environment?
Old_Skeet