Monday, September 14, 2009

consider a short term bond fund

On Saturday, I discussed te fact that money market funds and cashable
GICs have reached a point where they are paying essentially no yield.
This is definitely motivating investors to seek alternatives for their
short term, secure money. In essence, the returns are the equivalent
of putting your cash under your mattress. One interesting alternative
that you may consider is a short term bond fund. There are several
funds that are focused on high quality investment grade bonds, which
offer significantly better returns than a money market fund, with very
little extra risk. If you are looking for a home for your "safe"
money, you may want to consider a short term bond fund i n your
portfolio. Are you looking for a second opinion?

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