Still Mostly in Cash

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 |  Includes: IPE, TIP
by: Matthew Rafat

On April 1, 2009, I predicted the S&P 500 would hit 950.

I later clarified that my prediction was a range between 920 and 950. The S&P 500 hit my range on May 6, 2009. My prediction was correct. From April 1, 2009 to May 6, 2009, the S&P rose 13.3%.

I want to emphasize something. As of May 7, 2009, I am not making any prediction about the future direction of the market. I have no idea what's going to happen. As a result, I am mostly in cash and money market funds, along with some TIPs. I've also opened up two credit union accounts. I'm only earning 1.5% interest there, but it's better than my brokerage's 0.5% rate.