More from Janet Tavakoli:
Money market investors may want to take care to avoid becoming the victims of an accidental financial mugging.
Many mutual funds (Vanguard for example this July) closed or merged their short term treasury money market funds and closed them to new investors. T-Bill effective yields apparently don’t cover even the lowest fees.
Government guarantees for other short-term money market funds that invest in CDs and commercial paper only extend to the balance at the time the guarantees went into place—not to new money coming in from liquidations. Investors should take note that the guarantees expire in September (but may be renewed), and may not cover their entire balance.
Investors may want to park excess cash in T-Bills.
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