3 safe places to keep cash if you're worried

The Ticker

April 27, 2001|By Julius Westheimer

IF YOU are worried about the stock market, Ray Martin, the president of City Street Advisers, recommends these as the best ways to stash cash:

Money market funds. ("Use tax-exempt funds if you're in the 31 percent or higher federal tax bracket, use taxable funds otherwise.")

Brokerage CDs. ("They offer the same FDIC insurance as CDs from banks, but typically pay higher interest and generally charge no withdrawal penalty.")

Short-term bond funds. ("They pay a bit more than money market funds, but beware of frequent trading which generates capital gains taxes.")

WALL STREET WATCH: "This rally still looks suspect to me." (Ned Collins, head of trading, Daiwa Securities America)

"Given the weak profit outlook, stock valuations still look high." (Ned Davis Research)

"Sure, high-tech bottomed, but that doesn't mean it's going to go straight up." (James Paulsen, Wells Capital Management Co.)

According to Hulbert Financial Digest, these stocks are the most popular among market newsletters: American Express Co., AT&T Corp., Cisco Systems Inc., Exxon Mobil Corp., General Electric Co., Lucent Technologies Inc., Philip Morris Cos. Inc., Johnson & Johnson, General Motors Corp. and Sun Microsystems Inc.

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