Invest in CDs now or wait?

[JohnHL]

With interest rates rising, the Fed set to meet Nov 2, and the election Nov 8, would it make sense to wait 20-30 days for higher interest rates or start buying CDs now.

The ladder approach appeals to me and I have already availed myself on the I Bond.

What say the wise Forum?

John?

 

[tominboise]

You are asking someone to predict the future, which no one can do. I myself believe the fed will raise the rate and CD rates will rise somewhat. But I have been buying a few CD's here and there because it beats having the cash sitting.

 

[Geronimo Jim]

NOW IS THE TIME TO BUY STOCKS.....if you got a few years.
Huge opportunity for long term investor. But, I understand
ladder system for CD's for the cautious.

 

[pharmer]

Yeah, stocks. I'm 70 next birthday and I ain't betting on making it. I plan to live forever and so far I'm right. Question of time before I'm wrong. I've been wrong on money just about always. But I did live through the "Peanut Farmer Debacle of the '70's and remember 12% CD's. '90's got them close to 8%. I figure 6% in the near future, who knows when the bubble pops. They ain't sold a new house around here in months and there are thousands available. Current management makes the Peanut Farmer look like a nuclear sub commander. Oh, yeah........ Joe

 

[ladder13]

CD's are paying what? 3-4%? Yes, better than watching stocks go down, but not a long term plan imo.

As history tells us time and again, once we get going, the markets will take off again.

We have an account with Fidelity. We are fully invested all the time. Fidelity gives us tax, inheritance, and planning advice. Always there for us.Our decision to make. Very happy with them for 15 years now, haven't touched any of it.

Do what makes you sleep well at night, most importantly.

 

[JohnHL]

The stock market is good advice, but not for me.

I guess my question is, will interest rates continue to rise, or will the fears of a coming recession and the election dampen the Fed's enthusiasm for rate increases?

Higher rates inevitable over the short term?

Prognosticate, please.

John

 

[Faulkner]

I'm standing firm in my market portfolio. I'm off a good bit, but the rebound is always stronger and faster than the fall.

 

[ladder13]

John, I am not an economist but history tells us higher rates will/should slow business investment and tamp down consumer spending. The housing market is the best example.

Guaranteed, they will over tighten, economies don't start and stop on a dime.

 

[BSA1]

The best way to double your money is to fold it in half and put it back in your pocket. Cash will always be there. Can't say the same about dividends and interest.

 

[tominboise]

The best way to double your money is to fold it in half and put it back in your pocket. Cash will always be there. Can't say the same about dividends and interest.

Should put that cash to work or it declines in value sitting in your pocket. 4% doesn't match inflation but it beats 0% everytime.

 

[THE PILGRIM]

Also standing firm on Equities.
But it's not that easy!
Have Laddered Bonds for years.
Now have Bonds maturing, will probably turn that money into Short Term Feds, Agency Bonds, CDs maybe.
Not prepared to go long at this time.
Subject to change anytime depending on what the DC Needle Necks do.
Some forces there seem Hell Bent to Raise Interest Rates, others trying to lower them.

 

[ladder13]

If you put one dollar in a sock drawer 30 years ago it is not a dollar, it is 50 cents. You lose money by doing nothing anyway.

https://www.google.com/url?sa=t&rct...=1&year=1992&usg=AOvVaw1T_LYGHWlapTofMZJ-Xe_0

 

[NYlakesider]

If you put one dollar in a sock drawer 30 years ago it is not a dollar, it is 50 cents. You lose money by doing nothing anyway.

https://www.google.com/url?sa=t&rct...=1&year=1992&usg=AOvVaw1T_LYGHWlapTofMZJ-Xe_0

Right you are that is why my portfolio is weighed heavily in "widows and orphan stocks" and REITs. Both medical and apartment ownership.

Yes I have lost a bunch of money on paper, but the dividends have not been cut as of yet, they just keep on rolling in. I have been doing the market for a long time and it has always came back and then went on to do better.

Course at this time my age and general health is against me but I hope to see things rebound again while I'm still on the green side of the grass!

 

[GypsmJim]

I've been investing in Hand Ejectors and SeaRays. I dunno about profits and losses, but both make me smile. Watching my other investments makes me frown.

On a serious note I just got a 6% CD thru LPL financial. Bonds, stocks and other platforms have collectively lost about 15% in recent years.

We intend to do a lot more traveling now, and all that expense will make me smile as well.

 

[Bald1]

I know this about CDs. There is lost opportunity cost when you tie up your money. But I guess one could argue it's also costly to remove money from the market right now because you'll probably sell at a loss. I favor cash at the moment. All my dry powder will remain dry for a while. Cash is king when people start selling tangible assets.

 

[THE PILGRIM]

When you print more money it devalues that money.
Want to see an extreme example?

 

[len917]

I did a whole reworking of my portfolio in 2018. Went from spec. to solid mutual funs w/ Fidelity & T Rowe Price. In the past year or so we lost almost 30% of our investment. Put $$ in cash with the above and bought some CD's. My wife and I are 80 yrs old and in great health and cannot take chances any more. Will wait it out to see when the real bull market begins and go back in slowly.

 

[pharmer]

When you print more money it devalues that money.
Want to see an extreme example?

I like it. If we pay our current $31+ trillion debt with that note, we'll get back over $68 trillion in change. Should cover the USA at least until Christmas. Joe

 

[BSA1]

Those oppose to keeping cash on hand. How much actual cash will you have after you pay Federal and State Taxes and Income Tax when your CD's reach maturity or you withdraw from your stocks and bonds and/or you need the money when the market is down?

 

[SMSgt]

Those oppose to keeping cash on hand. How much actual cash will you have after you pay Federal and State Taxes and Income Tax when your CD's reach maturity or you withdraw from your stocks and bonds and/or you need the money when the market is down?

More than that dollar you stuffed under your mattress.