s*****m
发帖数: 2024 | 1 股票账户空仓的时候，想把钱防盗money market里面
thanks | S**C
发帖数: 2964 | 2 Most MM funds has EU exposure, except treasury MM funds. Given such low
current yield, and potential EU risk, I am afraid that you are not get paid
adequately for the risk to own non treasury MM, or any MM fund for that
matter.
If you really really have no choice other than MM, then pick the least worse
hoping they will step in when needed for their reputation and long-term
interest. | h*****a
发帖数: 131 | 3 Vanguard Primary MM fund is fine. Zero direct exposure to EU government bond(whose holding exposed to PIIGS) , according to its statement.
Even pure federal treasury MM still have risk, mostly system risk. So
hedging strategy still required.
paid
worse
【在 S**C 的大作中提到】
: Most MM funds has EU exposure, except treasury MM funds. Given such low
: current yield, and potential EU risk, I am afraid that you are not get paid
: adequately for the risk to own non treasury MM, or any MM fund for that
: matter.
: If you really really have no choice other than MM, then pick the least worse
: hoping they will step in when needed for their reputation and long-term
: interest.
| s********n
发帖数: 1962 | 4 You guys worry too much...
If a money market fund breaks $1, it's already close to the end
of the financial system. If you really lose say 10% in MM fund
due to systematic risk, I am sure at that time you will have
something else much more important to worry about.
bond(whose holding exposed to PIIGS) , according to its statement.
【在 h*****a 的大作中提到】
: Vanguard Primary MM fund is fine. Zero direct exposure to EU government bond(whose holding exposed to PIIGS) , according to its statement.
: Even pure federal treasury MM still have risk, mostly system risk. So
: hedging strategy still required.
:
: paid
: worse
| h*****a
发帖数: 131 | 5 Very true.
【在 s********n 的大作中提到】
: You guys worry too much...
: If a money market fund breaks $1, it's already close to the end
: of the financial system. If you really lose say 10% in MM fund
: due to systematic risk, I am sure at that time you will have
: something else much more important to worry about.
:
: bond(whose holding exposed to PIIGS) , according to its statement.
| S**C
发帖数: 2964 | 6 You miss the point. The question is if you get paid adequately for the risks you take, no matter how small the risk is, and if there are better alternatives.
Given the yield you basically have zero return but non-zero risk, why you want to do that even the risk is tiny but rising? Why not put into FDIC insured bank account.
【在 s********n 的大作中提到】
: You guys worry too much...
: If a money market fund breaks $1, it's already close to the end
: of the financial system. If you really lose say 10% in MM fund
: due to systematic risk, I am sure at that time you will have
: something else much more important to worry about.
:
: bond(whose holding exposed to PIIGS) , according to its statement.
| S**C
发帖数: 2964 | 7 So it is fine to have exposure to SocGen, hoping they are not Dexia?
bond(whose holding exposed to PIIGS) , according to its statement.
【在 h*****a 的大作中提到】
: Vanguard Primary MM fund is fine. Zero direct exposure to EU government bond(whose holding exposed to PIIGS) , according to its statement.
: Even pure federal treasury MM still have risk, mostly system risk. So
: hedging strategy still required.
:
: paid
: worse
| s********n
发帖数: 1962 | 8 I got your point this time. And I agree with you.
risks you take, no matter how small the risk is, and if there are better
alternatives.
want to do that even the risk is tiny but rising? Why not put into FDIC
insured bank account.
【在 S**C 的大作中提到】
: You miss the point. The question is if you get paid adequately for the risks you take, no matter how small the risk is, and if there are better alternatives.
: Given the yield you basically have zero return but non-zero risk, why you want to do that even the risk is tiny but rising? Why not put into FDIC insured bank account.
| s*******d
发帖数: 126 | 9 I personally think that it is impossible for an average investor to make
decision on close-to-zero-level of risk vs rewards calculations. Yes, there
is some miniscue risk in placing Vanguard's Prime MM fund, and there is also
some variabilities associated with potential gains from the MM fund, most
people can't think straight (or understand) probabilities on such a small
scale (between Vanguard MM and your local credit union FDIC insured MM, that
is). If one insists on heckling over these finer points, they typically
would have a whole lot worse to worry about with their investement portfolio.
risks you take, no matter how small the risk is, and if there are better
alternatives.
want to do that even the risk is tiny but rising? Why not put into FDIC
insured bank account.
【在 S**C 的大作中提到】
: You miss the point. The question is if you get paid adequately for the risks you take, no matter how small the risk is, and if there are better alternatives.
: Given the yield you basically have zero return but non-zero risk, why you want to do that even the risk is tiny but rising? Why not put into FDIC insured bank account.
| S**C
发帖数: 2964 | 10 Personally I think an average investor will choose risk-free no-return over
return-free risk in a heartbeat.
Just they may not aware MM carries such risk, especially at current time.
there
also
that
portfolio.
【在 s*******d 的大作中提到】
: I personally think that it is impossible for an average investor to make
: decision on close-to-zero-level of risk vs rewards calculations. Yes, there
: is some miniscue risk in placing Vanguard's Prime MM fund, and there is also
: some variabilities associated with potential gains from the MM fund, most
: people can't think straight (or understand) probabilities on such a small
: scale (between Vanguard MM and your local credit union FDIC insured MM, that
: is). If one insists on heckling over these finer points, they typically
: would have a whole lot worse to worry about with their investement portfolio.
:
: risks you take, no matter how small the risk is, and if there are better
| h********8
发帖数: 7355 | 11 华美银行，一年半CD，２。７５％，rmb涨就更高。
【在 s*****m 的大作中提到】
: 股票账户空仓的时候，想把钱防盗money market里面
: thanks
| h*****a
发帖数: 131 | 12 Well, you have to draw a line between full front and full retreat, do you?
Then it is all about confidence and credit in play.
And things do change.
【在 S**C 的大作中提到】
: So it is fine to have exposure to SocGen, hoping they are not Dexia?
:
: bond(whose holding exposed to PIIGS) , according to its statement.
| S**C
发帖数: 2964 | 13 Your case can be made if VMMXX yield meaningfully more than FDIC insured
bank account, say 1-2% more, then sure why not? But currently VMMXX yield
only 0.02%.
【在 h*****a 的大作中提到】
: Well, you have to draw a line between full front and full retreat, do you?
: Then it is all about confidence and credit in play.
: And things do change.
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