Money Market Account

[RS3579]

Vanguard

 

[TXCO]

Amex highyield


Sent from my iPhone using Tapatalk

 

[N.ID7803]

I have mine in UFB AT 5.25%. I always look at Investopedia, they usually have themost up to date rates on High Yield savings. When it was shooting up I jumped and chased the highest rate. Now it has leveled off so my money will stay put unless it goes up or down dramatically.

Best High-Yield Savings Accounts for April 2024—Up to 5.50%

Compare today’s best high-yield savings account rates with our ranking of over 100 national banks and credit unions. Today's top rate is 5.50% from Poppy Bank.

www.investopedia.com

 

[MattB]

I have to disagree here, while t-bills have been a stable performing asset and there is tax benefits, US debt is so over leveraged that the bond market could collapse at any time.

Haha, no.

 

[FrancoisStrawman]

Could collapse and has collapsed are 2 different things. Over the last year, my T-bills have beat most MM accounts. In the event they collapse, worse case scenario is you are not gonna make as much interest on said 4 week bill. In 4 weeks, you can choose a different investment. Any time I can pay Uncle Sam less and make more, I will.

The market has been "going to crash" for over 5 years now. Many of us have waited for the "housing market crash" to happen or the "Vehicle market crash." It hasn't happened yet. Will it happen? Absolutely. When will it happen? who knows. So far about a billion " analysts " have been wrong. They are as accurate as weather people. When it happens, they will be like " I told you so." Even tho they have been telling us so for years now.

Timing the market is tough for us Average folks.... Taking advantage of unprecedented returns with little to no risk is a no brainer.

You don't stay in a bubble when the market is going to crash, once you know the market is pumped up on manipulation, the sound decision is to sell, precisely because you can't time the market. The issue with T-bills is uncle sam will happily renege on their promises due to their collapsing debt. The plan is to screw over bond holders and not pay back their debts (like how NIxon screwed over france and went off the brettan woods system), because the current monetary system is collapsing. Therefore the worst case scenario is not that you make less, but that you lose everything.

Bonds are not a low risk investment, when the government has to chose between their continuation or screwing over bond holders, they have done it in the past and they will do it again. But if you want a more recent example of them reneging on contracts look at the London Metals Exchange were they reversed the trades to avoid themselves from going bankrupt making the traders penniless and throwing legal precedent out of the window.

 

[FrancoisStrawman]

Haha, no.

Absolutely adjusted for inflation we are spending more money than during WW2 and we aren't even in an active conflict. Once BRICs pay is online hyper inflation and the collapse of the petro dollar is inevitable.

US Debt 2022 30.8 Trillion, US Debt 2023 33 trillion, US debt now 34.6 trillion. The average increase is rapidly accelerating and the current interest rate is 100% of all tax receipts.

 

[HuntHarder]

Absolutely adjusted for inflation we are spending more money than during WW2 and we aren't even in an active conflict. Once BRICs pay is online hyper inflation and the collapse of the petro dollar is inevitable.

US Debt 2022 30.8 Trillion, US Debt 2023 33 trillion, US debt now 34.6 trillion. The average increase is rapidly accelerating and the current interest rate is 100% of all tax receipts.

Gotcha... So they will reneg on bonds and bills but not Fdic insured money... Oh boi

 

[FrancoisStrawman]

Gotcha... So they will reneg on bonds and bills but not Fdic insured money... Oh boi

They will do both, of course. Which is why I suggested (gold and silver, real-estate, supplies, and production equipment), over any other option. Money markets are only for liquid emergency funds of 6 months in cash. They will still be able to drain bank accounts, once they consolidate their control in cash, but they aren't able to do it at this moment due to lacking the direct access to private banking accounts. However, once CBDC is fully implemented this fact will change.

Short term bonds are much less liquid than a money market, so they defeat the purpose of an emergency fund. Hence, a money market is better for the six month emergency fund. For investments, gold and silver (physical coins and bars) are your insurance and real-estate/production equipment are your money makers.

 

[FrancoisStrawman]

To add they can already drain bank accounts of major banking institutions, like TD, Chase, JP Morgan, City e.t.c., but they have a harder time doing it for smaller institutions, provided that you have not implemented direct deposit with the irs. They are currently working on changing this to do the mother of all rug pulls. With FedNow and CBDC.

 

[MattB]

Absolutely adjusted for inflation we are spending more money than during WW2 and we aren't even in an active conflict. Once BRICs pay is online hyper inflation and the collapse of the petro dollar is inevitable.

US Debt 2022 30.8 Trillion, US Debt 2023 33 trillion, US debt now 34.6 trillion. The average increase is rapidly accelerating and the current interest rate is 100% of all tax receipts.

Absolute foolishness. Japan’s Debt/GDP ratio is over 2x that of the U.S. and yet Japan has not defaulted on its sovereign debt. Suggesting the US “bond market could collapse at any time” is ridiculous. The same for a stock market “collapse” (pull-back, not unlikely, but collapse? That’s just dumb).

But when someone doesn’t know the difference between interest expense and interest rates, such comments aren’t surprising.

 

[MattB]

To add they can already drain bank accounts of major banking institutions, like TD, Chase, JP Morgan, City e.t.c., but they have a harder time doing it for smaller institutions, provided that you have not implemented direct deposit with the irs. They are currently working on changing this to do the mother of all rug pulls. With FedNow and CBDC.

If I had to guess, I would say the chin strap on your tinfoil helmet is too tight and is cutting off the blood flow to your brain.

 

[Hnthrdr]

I am a bit of a tinfoiler myself fransico… but if what you are predicting happens we will have way bigger problems than holding enough physical assets or the gov confiscating dollars, like the only thing that will be worth anything is guns, ammo, and the ability to survive an apocalyptic state… so while I dabble in precious metals I have to believe that our dollar is worth something and invest it accordingly… ps if the USA has a fiat currency… ummm so does the rest of the world

 

[MattB]

US Debt 2022 30.8 Trillion, US Debt 2023 33 trillion, US debt now 34.6 trillion. The average increase is rapidly accelerating and the current interest rate is 100% of all tax receipts.

Just on a lark, I looked up DOT interest expense for 2023 as well as IRS tax receipts for the 2023 tax year. Net interest expense was $659B and tax receipts were $1.73T, so 38% whereas you claimed it was 100%. That isn’t to say the increase in national debt and the amount of interest we are paying on it isn’t of concern, just adding that you are also posting things that are not true as well as not knowing what you are talking about.

Can we get back to talking about MMF now?

 

[2531usmc]

As we’ve discussed, MMFs are paying a little over 5% and equities are on a seemingly euphoric tear up.

But eventually, for most retail investors, the MMF will have to rotate into equities to protect it from being attritted by inflation.

I’ve literally waited for years for a good corrrection in equities to move the money from cash. But I’m still waiting

Anybody else in the same mind set. Still holding out for a big downdraft or rotating a little in every month?

And maybe the heart of my question may be thinking that much of the rise of the stock market is fomo but part of the updraft may be inflation protection.

 

[FrancoisStrawman]

Absolute foolishness. Japan’s Debt/GDP ratio is over 2x that of the U.S. and yet Japan has not defaulted on its sovereign debt. Suggesting the US “bond market could collapse at any time” is ridiculous. The same for a stock market “collapse” (pull-back, not unlikely, but collapse? That’s just dumb).

But when someone doesn’t know the difference between interest expense and interest rates, such comments aren’t surprising.

Japan props up their economy with US bonds, the US has no fallback guy to prop their economy up with, the biggest buyer of US debt was China and China has slowed their bond purchases. Once the US cannot pay their debts they will default, like they did after nixon got off the gold standard. The issue is this time there is an alternatice, i.e. BRICs.

 

[FrancoisStrawman]

I am a bit of a tinfoiler myself fransico… but if what you are predicting happens we will have way bigger problems than holding enough physical assets or the gov confiscating dollars, like the only thing that will be worth anything is guns, ammo, and the ability to survive an apocalyptic state… so while I dabble in precious metals I have to believe that our dollar is worth something and invest it accordingly… ps if the USA has a fiat currency… ummm so does the rest of the world

There is no tinfoil theory here, it is just simple economics. I am personally banking on a great depression situation, but that may be a bit naive considering current polarization. That said, The correct decision in your case would be to find a community of like minded individuals, go offgrid or leave the country if you are worried about a failed state situation. I am not talking about those things. Just like in the great depression, banks will bail in deposits to pay off their debts and the federal reserve will go under in addition to this causing them to bail in all the banks deposits to pay off their debts.

 

[FrancoisStrawman]

As we’ve discussed, MMFs are paying a little over 5% and equities are on a seemingly euphoric tear up.

But eventually, for most retail investors, the MMF will have to rotate into equities to protect it from being attritted by inflation.

I’ve literally waited for years for a good corrrection in equities to move the money from cash. But I’m still waiting

Anybody else in the same mind set. Still holding out for a big downdraft or rotating a little in every month?

And maybe the heart of my question may be thinking that much of the rise of the stock market is fomo but part of the updraft may be inflation protection.

The stock market is 100% fomo, why is bitcoin going up (when there is no use case (there are already hundreds of coins that do what bitcoin does but better.)). Why is AI going up, when they've bottlenecked and have not replaced many jobs outside niche journalist positions. If there was anything to invest in it would be energy/general commodities, but they are being manipulated down in order to "fight inflation", which will cause shortages. There is nothing to invest in, at least in the standard market. IF you want to beat inflation, buy metals or purchase goods and services that you need now, before they go up in price. Inflation is only going to get much worse from here on.

 

[FrancoisStrawman]

Just on a lark, I looked up DOT interest expense for 2023 as well as IRS tax receipts for the 2023 tax year. Net interest expense was $659B and tax receipts were $1.73T, so 38% whereas you claimed it was 100%. That isn’t to say the increase in national debt and the amount of interest we are paying on it isn’t of concern, just adding that you are also posting things that are not true as well as not knowing what you are talking about.

Can we get back to talking about MMF now?

100% tax receipts after spending obligations, I apologize for not clarifying this further. 1st there is no valid 2023 data because the books on receipts and expenditure for 2023 can still be revised, due to late filings, and government spending mistakes. The data I am talking about is projections from 2022 onward. The interest on the debt was 399billion, the mandatory spending was 4.1 trillion (social security, medicare, wick, e.t.c.), and the discretionary spending was 1.7 trillion (military and spending packages). Based on current trends and the preliminary data from 2023 (https://www.cbo.gov/system/files/2024-03/59728-Mandatory-Spending.pdf), it is projected that the interest and mandatory exceed total tax receipts, which they do int he data by 100 billion.

To put it in layman's terms even if we gutted the military and infrastructure, we would still be in the hole.

This is unsustainable and will result in hyper inflation provided it isn't addressed. As our budget is in a similar state to Weimar Germany.

Any investment you hold that isn't generating revenue is going to lose money to inflation, the current inflation rate is at https://www.shadowstats.com/alternate_data/inflation-charts. Some sectors like food are over 50% inflation, but some of this is due to supply chain disruptions.

Hence, I recommended MMF for liquid emergency funds, gold and silver for sitting money, and real-estate/ production assets for cash flows. These track with what those who came ahead during those periods (Weimar, Great Depression, Soviet Union Financial crash) held.

AS an extra tidbit, JP morgan released a memo to their high level clients telling them to expect a crash in the coming months. So for anyone playing the stock market or bitcoin right now, sell. It may go even higher, but once you know a market is a bubble the only winning move is to sell and make your money, because you can't see the future. Don't wait till the last minute to get out of a crashing car.

JPMorgan expects 'significant EPS downgrades', tells clients to 'pare back risk' into 2024 By Investing.com

JPMorgan expects 'significant EPS downgrades', tells clients to 'pare back risk' into 2024

www.investing.com

 

[FrancoisStrawman]

I understand, that you don't want to approach the subject further and I apologize for making you uncomfortable. I sincerely want to help anyone if possible and am not looking to argue or be combative. Most of this information is not discussed in the mainstream, so it may be useful to some of you. Thus this will be my last post.

 

[MattB]

AS an extra tidbit, JP morgan released a memo to their high level clients telling them to expect a crash in the coming months. So for anyone playing the stock market or bitcoin right now, sell. It may go even higher, but once you know a market is a bubble the only winning move is to sell and make your money, because you can't see the future. Don't wait till the last minute to get out of a crashing car.

JPMorgan expects 'significant EPS downgrades', tells clients to 'pare back risk' into 2024 By Investing.com

JPMorgan expects 'significant EPS downgrades', tells clients to 'pare back risk' into 2024

www.investing.com

No they didn’t. If you had a lick of sense you would understand that the memo is projecting a pullback in equity valuations because of a trend of declining EPS. Only a simp would read that and come away thinking “market crash”. Can you let the adults talk?