Just checked the Vanguard web-site for money market fund yields and I am happy to see that the Prime Money Market Fund (Symbol: VMMXX) is finally yielding 2%. My monies are finally working for me. It is about time.
The Short Term Bond Index Fund (Symbol: VBISX) is yielding 3.31%. The duration of this fund is 2.5 years. There is a very good possibility of rates rising by as much as 2% this year. In this situation, the return of the short term bond index fund might be zero or negative.
Cash is king today.
No comments:
Post a Comment