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


To: robert b furman who wrote (46302)1/23/2012 9:09:56 PM
From: E_K_S  Read Replies (1) | Respond to of 78715
 
I checked today and it is 3%. Just over 3x what my Credit Union pays. It is not w/o interest rate risk because when interest rate rise, the price of the fund falls. Over the last 7 years the trading range has been between $9.50/share and $11.20/share, so it is selling currently at the higher end on their price range. For me, as long as the Fed is in their "ease" mode (ie holding the Fed Fund rate at current levels w/ quarterly updates to the public), I am willing to park liquid funds there until the policy changes.

We are in historical times for the current interest rate cycle so it is not the time to become complacent about the world's economies. Otherwise, why would interest rates still be so very low?

EKS