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I thought we just heard in a hank post there may only be 1 rate hike this year. Where to put cash is getting more complicated with CD's lower then they were a month or two ago. I expected them to keep rising so i was buying them slowly. Now what?
Hi @MikeM: I am much like you in using cash alts such as money market mutual funds plus I have built a nice CD ladder within my investment cash sleeve. I have a 1.55% cd maturing in a couple weeks; and, I plan to roll most of it into another 18 month cd with a yield of around 2.5% to 2.6%. However, I most likely will cut some out of it and put this money into an income generating mutal fund held within one of my income sleeves. Funds I'm considering are PONAX with a yield of 5.23% or PMAIX with a yield of 5.82%. I'm thinking of shifting some more money that was targeted to the cash area of my portfolio into the income area. For me, all bond funds are part of my income area.
Three month Treasury auction is projected to yield 2.37%. I'm not convinced it's worth going out another 15 months to pick up 1/8 of a percent. (Certainly not in a taxable account if you're in a state with even a 5% income tax.)
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Really flattening yield curve now.