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

To: Wyätt Gwyön who wrote (83291)	4/19/2007 1:53:12 PM
From: upanddown	Respond to of 206325

Wyatt You're right that some short-term treasuries have higher yields than Cash Reserves but Fido is not showing any short-term auctions that are higher than 5% right now. My guess would be that commissions and spreads from buying in the secondary market would negate any yield advantage over cash. Sure, if Bernanke cuts, yields would plummet but you could then react immediately without losing much income and move it to something that would benefit from a rate cut like maybe a bank ETF. If you are in the middle of a 90-day treasury or CD when he cuts, those opportunities could be gone by the time you get the dough back. There always seem to be tradeoffs for every investment choice. 45bps is a hell of a lot but they all do that with the possible exception of Vanguard. I've heard cash is Schwab's biggest moneymaker by far. Thanks to ridinycurve, I'm switching to the institutional MMF tonight. 23bps higher and 18bps expenses. John