Re: [CANSLIM] Where do I put my cash?

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Where do I put my cash?
Date: Thu, 27 Jun 2002 08:38:44 -0400

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should have finished my thought before hitting send.

REITs have generally been doing nicely for some time, and with the continued
strong housing market, and low interest rates continuing at least until late
this year, should continue to pay high returns with reduced market risk. But
I would only commit a small portion of cash to this, and be prepared to get
out as soon as perceptions shift towards expectations of an upcoming Fed
rate hike. REITs can seriously underperform when rates start rising.

- ----- Original Message -----
From: "Tom Worley" <stkguru@bellsouth.net>
To: <canslim@lists.xmission.com>
Sent: Thursday, June 27, 2002 8:32 AM
Subject: Re: [CANSLIM] Where do I put my cash?

absolutely correct. There is a fairly direct correlation between risk and
reward. Some vehicles, such as bond funds, utility funds, and REITs, pay a
considerably higher return than money markets, but all carry market risk. If
you look at the Dow Jones Utility Index, for example, you will see that it
is now well under its Sept lows, even tho it is often seen as a defensive
haven for mutual funds that must invest somewhere, even in bad times.

If price depreciation is measurable, it can completely offset the higher
income return, and give you a net loss.

- ----- Original Message -----
From: "Robert Gammon" <rgammon51@yahoo.com>
To: <canslim@lists.xmission.com>
Sent: Thursday, June 27, 2002 8:00 AM
Subject: Re: [CANSLIM] Where do I put my cash?

With higher yields, you also get risk of loss of principle.  You
will want this cash at a moment's notice when M turns around.
You don't know whether that will be 30 days or 30 months or 30
quarters.  Virtually everything that pays more than money markets
also carries with it market price fluctuation.  If you need the
cash in a hurry, market price may well be LOWER than your
purchase price (particularly so if interest rates start to tick
back up again).

So, how much risk of loss of capital are you will to tolerate?
How long are you willing to tie up your capital?

Robert Gammon

On Thu, 27 Jun 2002 05:53:46 -0600, Patrick Keeley wrote:

>About a year and a half ago the company I work for allowed us to
transfer our pension savings to a brokerage (Schwab) account? I
want to get into individual stock investing and decided to be a
CANSLIMer. However the M has kept me out of the market the entire
time.
>
>My question now is where is a good place to accumulate interest?
The money market fund where my cash is now is almost worthless.
>
>I certainly enjoy the wealth of expertise on this board and
can't wait until the stock market turns around so I can invest.
>
>Thanks in advance for your help.
>
>Pat
>

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