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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (32348)10/7/2008 12:49:50 PM
From: rllee  Respond to of 78749
 
Paul, good points.

There is always risk in the market, nowadays even Money Market funds may have some risk depending on the institution (see Reserve Funds). The issue is whether some of the risks have been baked into the stock or CEF. I hold individual CA muni bonds too but not enough to become fully diversified so I am opting for muni funds in lieu of Money Market funds for a portion of my cash holdings. I think muni's are a way to go because of the prospects of higher tax rates for the next administration. I am tired of paying taxes for holding cash. We'll see if this is a good strategy. Will know in the fullness of time.