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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: upanddown who wrote (87717)2/19/2001 3:47:47 AM
From: energyplay  Read Replies (2) of 95453
 
Bought my BEGBX in Nov & Dec, also RPIBX

So I'm still up.

It is a short dollar play. A place to park money before moving to gold.

Back during the Russian crisis (or LTCM ?) when there was a large than normal discount between on the run 30 year treasuries and one a year older (for about 6 weeks), there was also a small dip in the value of FannyMae / FreddyMac
near governments.
Also, Greenspan or Summers tried to position themselves away from one of them (the mortgage lending agencies),
saying they did NOT have a direct call on Government credit.

Many Money Market Funds are stuffed full of paper from these near government entities, and some commercial paper.

The higher yield Money funds may have even more commercial paper.

My guess is that the people (I think they tend to be young people in most cases) running most money market funds aren't capable of judging default risk of commercial paper the
way the experienced people running a junk bond fund would.

I would bet that the money fund boys & girls could carry out a yield calculation to 8 decimal places, however.
That works great for governments with full faith and credit.

You may wish to check what sort of stuff your fund can buy...
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