Rattled investors have no safe place to sit out stock storm
"We arrange to remain in cash until the markets have proven to be on the rebound," he says. "We went through this same cycle back in 2008 and will scarcely wait it out."
Investors got some relief Thursday after positive economic news sent the Dow Jones industrial as a rule up more than 400 points. Still, the stock market's turmoil, combined with rising fears that the thriftiness is headed for another recession, has prompted many investors to seek a safer place for their money until the lunacy subsides. Here's the problem: Interest rates are so low that returns from traditional havens aren't even keeping traverse with inflation. The average interest rate for a 1-year certificate of deposit is 0.43%, according to Bankrate.com. The usual money market fund yields 0.1%. The 2-year Treasury note yields 0.18%.
