On Mar 31, 5:02 am, raylopez99 <raylope...@[EMAIL PROTECTED]
> wrote:
> An investor I know wants to have income, capital preservation (very
> im****tant) and some small capital gains for $500k to be invested with
> a term of 3 years from today. Capital preservation is im****tant, much
> more so than capital gains. In fact, the investor has the entire $500k
> in jumbo CDs. Ironically, after three years the investor intends to
> speculate in commercial real estate. Go figure.
>
> Please recommend which ETF/mutual funds (preferred over individual
> issues) they should invest in.
>
> RL
>
> --------------------------------------
Your friend should stick with CDs or money market funds if they need
to access the money in 3 yrs. There are countless ETFs that MIGHT
outperform CD rates over the next 3 yrs, but they all come with a risk
of capital loss. The higher the potential return, the higher the risk
of capital loss. If this wasn't true, no one would invest in CDs
until their rates increased to the point that is was true.
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