Thanks for your excellent article. Could you comment briefly on the relative safety of Money Market funds as a safe harbor for parking stock and mutual fund proceeds?For money you are keeping as liquid, money markets funds are a very good place to hold funds. There is no question that an implied govenment safety net exists under any of the larger funds. The 26 money market funds that the Fed just announced they will be doing business with, if they decide to do draining activities. are the ones the Fed is most likely to protect under all conditions. For the best protection, use one of them:
BofA Cash Reserves
BlackRock Liquidity Funds: TempFund
Schwab Cash Reserves
Schwab Value Advantage Money Fund
Deutsche Cash Management Master Portfolio
Dreyfus Cash Management Fund
Dreyfus Government Cash Management Fund
Dreyfus Institutional Cash Advantage Fund
Federated Government Obligations Fund
Federated Prime Obligations Fund
Fidelity Cash Reserves
Fidelity Institutional Prime Money Market Portfolio
Fidelity Institutional Money Market Portfolio
Fidelity Institutional Government Portfolio
First American Prime Obligations Fund
Goldman Sachs Financial Square Government Fund
Goldman Sachs Financial Square Money Market Fund
Goldman Sachs Financial Square Prime Obligations Fund
AIM STIT Liquid Assets Portfolio
JPMorgan Prime Money Market Fund
JPMorgan US Government Money Market Fund
Western Asset/Liquid Reserves Portfolio
Vanguard Market Liquidity Fund
Vanguard Prime Money Market Fund
Wells Fargo Advantage Government Money Market Fund
Wells Fargo Advantage Heritage Money Market Fund
I hasten to add that all your money shouldn't be in money market funds. This is a very tricky period and the possibility exists that there might be a short-term dip in gold, but that doesn't mean you don't need to hold gold as protection against future inflation that could heat up on very short notice.
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