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 What do u think about my returns on the market, Sucessful Hedge fund founder a possibility?
Well I started learning how to invest in the stock market around August of last year. Since august I managed to make 600+ every month with about 5000-8000 invested and currently im getting good to ...


 Why people buy one share of a company?
i saw in annual reports that some people hold only one share in the total share capital....


 Why is Sirius stock so low? Should we pounce on it now since it should go up?
...


 What is the typical employer contribution (matching funds) for a 401(k)?
My employer will match .50 cents on the dollar. But you have to contribute at least 3% of your pre-tax dollars per pay period in order to get the matching contribution. My husband said this was a ...


 Investment idea-one shot, put your money down, what would you do?
Ok, say you don't have much money. You can get by, but nothing extravagant.
You have $1500 to invest. In anything. Stocks, loan it to a friend, buy a stack of lottery tickets, run a bingo ...


 When you purchase a U.S. Savings Bond, are you still helping the Armed Forces?
...


 Taking out a loan to invest in penny stocks/??
I want to take out a load of 50,000 and invest in some penny stocks. Do you think this is a good idea. I heard alot of people become rich from investing big money in penny ...


 What are your picks for dividend stocks?
...


 What is the best way for a 22 year old to get started investing with little money?
I have a little more than five hundred to get me started, and am really doing this for the long term goals. I'm not sure if buying bonds would be the best thing, and if so, what type of bonds ...


 What is the difference between a Pyramid Scheme and stock market?
What is the difference between a Pyramid Scheme and stock market and y is one unethical and not the other?...


 Do you think daytrading can make you very rich?
Trading stock promise us high return and high risk. Do you think trading stock can make me rich? And what the key of success?...


 Why there are lot of fluctuations in indian stock exchanges in recent days?
...


 What is sstock market?
i dont have any idea about stock market.but i am very interested to invest in stock.pleas give me a good sugession. thank ...


 Re: Online Forex Trading?
Do I need a license to start an online Forex Trading Service? I live in the US....


 How do I raise £5000 for my university fee deposit in 2 weeks?
A four year degree in Pharmaceutical Science with Industrial Placement costing £40,000 approx. for tuition fees at Kingston University.
Yours in Need,
Joshua.
RSVP: josh1_d@yahoo.com ...


 R there any forex traders out there thats new and doing well at it, iv heard positives n negatives,?
need to talk to real traders ducie35@yahoo.com thats my yahoo messenger ...


 I want to buy a unit of gold, how large/heavy is it?
I want to buy a unit of gold (the type that's at $926.00 per right now) but I want it shipped to me. I think I'm looking for the .995 type. How large is this gold bar? How heavy is it?...


 I have $70-How can I make my money grow?
I found $70 that I forgot about. How can I make this money grow? Should I invest it, put it in bonds, save it? If so, how do I do these things and what are they? I will also be babysitting in august ...


 A teen who wants to buy stocks?
Any advice for a teen who wants to buy stocks for the first time? I'm thinking about getting a dividend re-investment plan for Pfizer or getting a S&P 500 index. Also, what happens if I'...


 Retirement advice?
I am currently 32. I plan to retire at 52. I am currently investing in a tax deferred account. I wish to have money available at 52 also. Is it better to invest on my own for the money I wish to have ...



Homer Simpson
How can cash be an investment?

Additional Details
just asking cuz i see alot of mutual funds say that they are 80% in stocks and 20 % in cash it makes no sense why cash is an investment
                     
 




rkoblitz
Rating
Cash by itself is not an investment, but I disagree with the answerer that said that CD's and Money Markets are not investments.
The generally accepted definition of an investment is when money is put to use for a profit. CD's and Money Markets certainly qualify in that respect.
When mutual funds say they have a percent in cash, it is actually invested in the money market, treasury bonds or another investment vehicle that has no risk.


Richard W
If the markets are in decline, having your assets in cash, even with no return, can be a positive, at least you're not losing.
And when you decide the market is at the bottom, you have the cash to jump back in with.


barry_robbins_98
I think most mutual funds hold onto a certain amount of cash for 2 reasons : first if people start selling their fund, they need to have some cash on hand. Also, if an investing bargain suddenly comes along, they have cash on hand to make a purchase.

If you are looking for investment ideas, I would suggest http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx


buklao
Rating
Cash is an investment in the sense that it earns interest sitting in a bank. However, the return on your investment without assuming any risk will likely be minimal. Over time your cash will not grow fast enough to outpace the rate of inflation. This is why it's important to invest your money. Inflation will eat it all up if left sitting in the bank. Given the recent interest rate hikes, there are reasons to keep your money in cash as the banks are paying around 4-5 percent return on it. However, if you are looking to invest in stock, see http://ibooyah.com investment matters for some ideas. Good Luck!


Daniel B
Rating
Cash by itself isn't an investment. CDs and Money Markets are not investments. If there is no risk, its not an investment.


Ryan W
Rating
I can't believe all of you are not describing inflation....unless I missed it in my quick scan.

If your government is printing money you have inflation by definition.

The symptom of inflation is loss of purchase power of your cash. Therefore if cash is in money market or CD it may be called an investment. However, if it doesn't beat inflationary loss of purchase power, I'd call it a very poor investment. And the government post of CPI is a poor measure of true inflation since most of our dollars transfer manufacturing bases such as China, and Malaysia. When these countries decide to diversify their currency holdings, all in the US will see the true wrath of inflation, and will loathe their choices if they choose to tuck it into CD's or money market 'investments'. You have to diversify. And by that I don't mean lots of different stocks. You have to include gold / silver too. And, I think some foreign treasury bills or currency aren't a bad idea right now.


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