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My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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Mr. Greenspan's Dilemma





Yes, I'd rather keep most of my cash at bay right now. 3% from money market account is good enough for me.

From MarketWatch:

As the Fed proceeds, though, investors will have to start looking over their shoulder at short-term rates. The Fed's latest statement ("monetary policy remains accommodative") virtually guarantees another rate increase at the August meeting.

Short-term rates are beginning to matter. The top money fund rates are now at 3.0%. They are heading to 3.50% in August. The rate is not quite competitive with equity funds' or bond fund returns. But considering the large risk difference between money funds (or CDs) and other market assets, short-term yields are close to mattering after being a non-player for over 21/2 years.

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