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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (6007)	10/11/2002 9:53:29 PM
From: GraceZ	Read Replies (2) \| Respond to of 306849

I always hold big cash (CDs, MMFs, treasury bond funds, muni bond funds) and I also employ income producing entities. I just like to warn people that when the yield on one of these vehicles (like a RIET or an income bond fund) is considerably higher than like vehicles it usually means the market is pricing it for higher risk or a likely change in that yield. If you go around chasing yield you have to be aware that you frequently get that yield by risking loss of your principle (consequently you never get the yield). If I'm going to engage risk I want to be compensated accordingly for that risk.