Read a discussion on Bogleheads, but the answers are all over the place (including the old "mattress" technique - without considering the comfort level for the sleeper, LOL).

Any way to avoid losing capital and still keep it safe?
Or is one obliged to purchase Treasury notes as low as the rates are? (Confession: I'm kind of confused about how to sell out of them, what the considerations are.)

Gold? As an ETF - being ready to sell if there's a solid downward trend?

It seems like a good time for a stock picker if one is so talented, but I note that even famous value-investor Buffet has refrained now (keeping much more in cash instead) - that is, despite his long-standing injunction to buy "when others are scared." His famous optimism somewhat faltering, he is now speaking of the strong possibility that (although the Market will, as always, eventually recover, it may take so long to recover lost assets), his old advice doesn't seem to apply. Apropos, he reminded his stockholders in his annual talk - virtual - of the decades it took for the Market to recover after the Great Depression. Who here has decades? Not I!

Likewise, another famous investor (sorry, forget name), spoke of this being the worst risk-reward ratio for investing he's ever seen in the Market.

So returning to the first question, what can one do if interest rates DO go negative (as Trump wants.). Of course, as one Boglehead pointed out, they already have in a sense since holding cash at a below inflation-rate, amounts to negative interest rate!.

It's hard to imagine retail savings account rates being negative. Other cash-like stuff like money markets could have a negative nominal return in theory but the negative amount would likely be quite trivial, compared to the downside risk of any alternative.

I really don't think this is a big concern for you and me in our overall financial pictures, compared to downside potentials in other asset classes.

I only wish that we were in remotely the same position in terms of our "overall financial pictures"!

As for me, I'm deeply concerned the more I read about negative interest rates (their intended economic purpose and how it plays out.).

Achieving higher inflation may be desirable for a country in terms of lowering the value of their currency, discouraging saving, and improving export potential.

However, for those dependent on a fixed income (including withdrawing from savings), higher inflation is a catastrophe.

What's more as I understand it, going negative and manipulating the currency, is a delicate line to toe in terms of the ultimate effect compared to the desired hypothetical one. For instance, it can (and has) led to hyper-inflation if the balance is not successfully struck.

You can always dump money into things like:

Putnam Ultra Short Term Income Fund. Currently paying 2.21%

quote:

Originally posted by Piano*Dad:
You can always dump money into things like:

Putnam Ultra Short Term Income Fund. Currently paying 2.21%

Many thanks, PD!

Welcoming all suggestions.

Of course, needing to educate myself about all the implications of such a move, especially since - as my brother aptly pointed out to me some time ago - it's relatively easy to jump into good investments. That the equally or more vital skill is knowing when to sell!

Definitely need to learn more!

quote:

Originally posted by Piano*Dad:
You can always dump money into things like:

Putnam Ultra Short Term Income Fund. Currently paying 2.21%

Does Vanguard have an equivalent?

Are bond funds -- especially bond index funds -- a reasonably safe place to put money right now.

I am not a sophisticated investor. I have just been kinda lucky so far.


One friend plowed all the cash he could scrape together into the U.S. stock market a couple weeks ago.

Answer to your first question (does Vanguard have one) is YES.

In fact, it is the most recommended one in this article I found very useful. Compared to Putnam (.4%) its expense ratio is only .2 too.

https://www.thebalance.com/are...t-investment-2466787