SubscribeAll Posts Tagged With: "money market funds"
U.S. Money Market Fund Assets vs. S&P 500 Market Cap
Are you ready to add some serious arsenal to your investment portfolio? Sick of hearing about all this gloom and doom on Wall Street? Honestly, I can’t blame you and it certainly appears to be the grim reality we face today.
Heck, even the presidential candidates cannot escape the market’s wrath in defining our political discourse. Your friends, neighbors, and co-workers have probably all regurgitated this information to you at some point.
So what’s an investor to do?
The simple answer is to buy. Yes, you heard me correctly. Start nibbling on cheap shares of quality companies today. Many companies that…
3Nov2008 | S. Oakes | Comments Off | ContinuedFed Steps in with $600 Billion Plan to Bolster Money Market Funds
The U.S. Federal Reserve yesterday (Tuesday) announced a new program that will provide as much as $600 million in emergency funding to money-market funds should the ongoing global financial crisis once again cause the short-term credit markets to freeze out borrowers.
The newly created Money Market Investor Funding Facility (MMIFF) will help money market funds meet redemption needs and keep from “breaking the buck” – dropping below the normal $1 in net asset value – as The Reserve Primary Fund (RFIXX) did after the collapse of Wall Street investment-banking giant Lehman Brothers Holdings Inc. (OTC: LEHMQ). Struggling money-market funds that have…
22Oct2008 | Money Morning | Comments Off | ContinuedClosed-End Income Funds: Why It’s Time to Buy Them
Pick a stock. Any stock. And invariably, one investor will argue it’s cheap. Another will say it’s expensive. Even in this panic-driven sell off. The problem, of course, is that no foolproof, infallible metric exists to determine who is right. Until it’s too late.
But the same is not true of closed-end income funds.
A first grader with a good grasp of addition and subtraction can tell whether one is cheap. Or expensive. Right now, they’re ridiculously cheap.
Since closed-end income funds issue a fixed number of shares, supply and demand determines market prices. That means it’s possible for such funds to trade…
16Oct2008 | Investment U | Comments Off | ContinuedMoney Markets: How Safe Is Your Cash?
Last week investors panicked. You can’t really blame them considering the state stocks and money markets were in:
-A 158-year-old investment bank failed.
-The nation’s largest brokerage rushed into the arms of Bank of America to stave off a similar fate.
-The world’s largest insurance company was on the verge of going belly up before Uncle Sam showed up at its bedside.
-And the country’s oldest money market fund – the Reserve Primary Fund – “broke the buck,” handing back shareholders less than a dollar a share.
Apparently, investors found this last development the most unnerving of all. To paraphrase Mel Brooks: Fat-cat bankers and…
25Sep2008 | Investment U | Comments Off | Continued
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