{"id":47017,"date":"2019-06-20T11:07:52","date_gmt":"2019-06-20T15:07:52","guid":{"rendered":"https:\/\/www.technologyinvestor.com\/?p=47017"},"modified":"2019-06-20T11:07:52","modified_gmt":"2019-06-20T15:07:52","slug":"our-only-free-lunch-diversification-what-to-do-with-your-cash","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=47017","title":{"rendered":"Our only free lunch — diversification. What to do with your cash."},"content":{"rendered":"

Our\u00a0 only free lunch is diversification.<\/p>\n

The S&P 500 is hitting its all time high. Many stocks are way overpriced but still going up. This is disturbing to someone like me who believes that stocks should be measured on their relation to earnings — not to a lofty multiple of sales.<\/p>\n

The hottest area is the cloud. You don’t have to build a factory to expand. Amazon Web Services has already built the “factory’ for you.<\/p>\n

I spread my portfolio “opportunistically.” Which means I grab what looks good at the time.<\/p>\n

Recently I sold an apartment and a house because house prices are tumbling and tumbling and tumbling. Not good investments. SALT killed it.<\/p>\n

I bought some stock. I updated the list of stocks We Like and Own.<\/em>\u00a0Check out the right hand column here.\u00a0<\/strong><\/a><\/p>\n

What’s a good temporary refuge for cash? (You need to keep enough for two years of your living expenses.)<\/p>\n

It’s not the bank. They give you nothing.<\/p>\n

CDs are ok. But they tie your money up.<\/p>\n

SPAXX is Fidelity’s safe fund that is paying around 2%.<\/p>\n

UTIXX is Todd’s favorite fund, full of treasurys. It’s paying 2.21%.<\/p>\n

All online brokers will sell you UTIXX.<\/p>\n

Your bank will also sell you\u00a0 a ladder of treasurys and manage them for you for between 25 and 35 basis points. That fee is pricey.<\/p>\n

You pay Federal income taxes on treasurys, but not state income tax.<\/p>\n

You can buy funds of muni bonds. They pay less interest but are better if you live in a state with high income taxes (like New York and California) and you actually have a job, i.e. you’re earning money.<\/p>\n

I don’t have a real job. For me at present UTIXX looks best.<\/p>\n

CHECK. CHECK. CHECK.<\/strong><\/span><\/p>\n

If you write an email that starts “Attached is…” it’s a good idea to check that your attachment is attached.<\/p>\n

Dah!<\/p>\n

Favorite Quora question<\/strong><\/span><\/p>\n

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I answered: “Any time the market is open.” I’ve had a whole bunch of “upvotes” — my most ever.<\/p>\n

Investment questions on Quora demonstrate<\/p>\n

Guess what killed the digital camera biz?<\/strong><\/span><\/p>\n

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Regime change — Iran, North Korea, Venezuela?<\/strong><\/span><\/p>\n

Iran shot down our $20 million drone and probably blew a couple of holes in oil tankers carrying Japanese oil.<\/p>\n

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Pompeo and Bolton want regime change. But regime change doesn’t work. Last time we had regime change in Iran, we put in the Shah.He got kicked out and replaced by the present irksome regime.<\/p>\n

The last time regime change worked was with Japan and Germany at the end of WWII. And that was expensive in lives and money.<\/p>\n

Write the White House: Tell them we don’t want a war with Iran. Heck, we’re still in Afghanistan. We invaded them in 2001 — 18 long years ago.<\/p>\n

Bad regimes can hang on forever. Venezuela’s Maduro and his cronies are secretly plundering gold in the state treasury. They steal gold bars, load them onto Russian planes and send them to Africa for melting and selling. It’s an amazing story. Click here.<\/strong><\/a><\/p>\n

Wonderful, but dumb cartoons<\/strong><\/span><\/p>\n

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Wonderful headlines<\/strong><\/span><\/p>\n

+ World’s scientists admit they just don’t like mice.<\/p>\n

+ Eminem terrified as daughter begins dating man raised on his music.<\/p>\n

+ Scientist breaks wind in a sound chamber. Never heard the end of it.<\/p>\n

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Harry Newton, who brought some Crowdstrike on a whim. It’s up. I’ll try for a little Slack (WORK) today on the same whim. This market has a great case of technology exuberance. Apple was over $200 earlier this morning!<\/p>\n