Cash, money market funds and very short term bonds are part of most asset allocations.
Investors and companies have been holding onto more cash even as the US economy show signs of improvement. The phenomena of holding cash is most pronounced in the technology sector.
Investors have been looking everywhere for yield in this low interest rate environment.
There was an article on CNN/Money that discussed how some individuals are tapping their 401k accounts to buy homes as investments.
401k retirement plans are a great way to save for retirement. I am frequently asked how much money my clients should put away for retirement in their 401k and when should they start to use some other type of account. That question is usually specific to the individual’s financial position as well as how their 401k plan stacks up against other investment account options.
The S&P 500 continues to move higher hitting fresh all time highs last week.
Early May Saturdays remind some of the Kentucky Derby while others are drawn to somewhere in middle America (my apologies to the Counting Crows).
The US markets keep hitting all time highs but the biggest rally during the past few months has been in Japan. The Nikkei has surged over 30% in US Dollars since November 14. The returns are even better in Yen terms with the index flying up 58% in the same period.
Stocks rallied last week as corporate earnings reports largely met expectations. The trend continues again this quarter that companies are beating or meeting earnings estimates but coming up short on revenues expectations. On the economic front the US economy grew at 2.5% in the first quarter.