Investor · Edison, NJ · Member since 2016 · 31 posts · 15 votes
I'm curious where others are storing their savings/capital (i.e., down payments, etc.) given the low interest rate environment, negative yields in sovereign debt markets, and US stock market at all time highs - in lots of ways the markets seem discombobulated and signalling different things. The only thing that seems certain is uncertainty.
I'm about to take the bulk of my savings out of the market (mostly index funds) and store in 1% savings as I'm most focused on capital preservation because I anticipate needing to deploy this capital in the next 2-3 years.
It depends on my situation at the time. If I have a balance on my line of credit, I will pay it down first.
After that, I tend to invest it in the stock market but I have a higher risk tolerance than some. I'll invest it in chunks in relatively stable performers (either an index fund or something which is essentially an index - BRKB is one of my favorites), but use different investment vehicles for each "chunk" so they are easy to track. If I need to draw some of those funds out, I'll draw from a chunk which either has a loss or a long term gain before going after one with a short term gain.