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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (83265)	4/19/2007 8:43:43 AM
From: maverick61	Respond to of 206325

John - agreed, the 7 day yield on Fidelity's Cash Reserves is very competitive IMO. I have debated at times keeping uninvested cash in other vehicles, but given the yield and convenience, haven't had a compelling reason to switch

To: upanddown who wrote (83265)	4/19/2007 9:12:49 AM
From: ridingycurve	Read Replies (3) \| Respond to of 206325

The Select Money Market Portfolio pays a slightly higher yield than Cash Reserves, but Cash Reserves is always the sweep account. IOW, a transfer must be made into Select, as well as a transfer out to cover any stock purchases. Seven figure individual accounts qualify for the institutional money market, which currently pays 23 basis points more than Cash Reserves. personal.fidelity.com Edit: Don't know what I was thinking. Fidelity will automatically pull funds from other money market accounts if there are not sufficient funds in Cash Reserves to cover a purchase.

To: upanddown who wrote (83265)	4/19/2007 11:29:20 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 206325

the currency ETFs are not a good comparison to the MMF because the main determinant of ETF return will be currency fluctuations, not interest--it is for the currency hedge (not yield) that one buys things like CHF, JPY. FDRXX is no better than the 90-day UST yield and worse than the 6-month yield ustreas.gov what's more, FDRXX yield fluctuates constantly, whereas USTs lock in a rate for the period. if Bernanke starts cutting because he is scared of a housing cr*sh, FDRXX yield will plummet immediately. this is what happened when Greenspan started lowering rates in the early 2000s. more importantly, you should ask how Futility can provide a 5% yield on FDRXX and still afford to pay itself 45bps. they do it because they invest in assets which are inferior to USTs. my general attitude is to either go for it or not go for it. i.e., invest in a manifestly risky asset and receive a handsome return for it (or at least have a handsome prospective return, because it might not work out), OR be in an absolutely safe investment. Buffett, who is someone we should all pay attention to, has said repeatedly that he either goes for USTs or risk assets. i don't see Buffett putting billions into toxic waste just to squeeze 20bp above USTs. but that's what these MMFs seem to do.