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

To: E_K_S who wrote (62673)	10/10/2019 10:11:38 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 78507

Hi EKS, Re: cash reserves............. I've been keeping enough cash in MMFs to handle most buying I might do on minor price upsets. The remainder I've been putting into RAVI (Ready Access Variable Income) as it pays better than most other cash equivalents. I'm not exactly getting rich this way, but every little bit helps. Current yield is a bit over 2.5% and it changes quickly with the interest rate environment. An inhibition to putting more in RAVI or SCHO has been commission expense on buying or liquidating it to use for cash reserves. Well, the latest "Me Too" movement on Commissions has cured that problem. I've pondered the how and the why of extreme low interest rates and don't think I'm smart enough to understand it. Historically ST rates have been a premium above inflation. Only since the start of the New Millennium have we had higher inflation than ST rates. Rates appear to have very little to do with Supply/Demand for borrowing. I guess that's why I've not been invited to be a FED chairman........ Tom