Where Can You Put Your Cash Now?

Yesterday, the market dropped to such historic lows, we were “officially” in a bear market for a while. Plus, we just had the worst June since the Great Depression. And in the first half of this year, the Dow dropped 14.4%, the S&P dropped 12.8% and the NASDAQ dropped 13.5%.

So, where can you put your cash right now when the market is this bad? Well, according to an article by Kevin Baker on TheStreet.com, you might want to look at Tax-Free Money-Market Funds.

Yeah, I know that their returns aren’t great compared to what you were used to with stocks and mutual funds a few years ago. But when the market is in bear territory, you might want some of the security that these bond funds can offer.

The article talks about funds like Evergreen Institutional U.S. Government Money Market Fund (EGNXX) that’s returned 3.9% in the past year. I know that’s not something to write home about. But when you consider that it’s tax-free, now we’re talking a return that’s way better than a lot of stocks, mutual funds and ETFs, not to mention taxable savings accounts.

So, if you’re looking for a little more safety, you might want to check out this article and the bond funds that it features.