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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: Justa Werkenstiff who wrote (9493)10/27/1999 1:29:00 PM
From: Investor2  Read Replies (1) of 15132
 
Re: "A risk free Ginnie Mae return of 7% is not looking so bad today."

I do agree that the 7% GNMA yield looks very nice. But for the record, while the GNMA bonds themselves may be backed by Uncle Sam, the value of a GNMA Fund, as in any bond fund, fluctuates. Therefore, it is possible to lose money in the fund and it isn't, IMO, truly risk free.

Best wishes,

I2
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