Friday, August 21, 2009

Massive exodus from cash and money market - but where to?

Bubbly situation brewing?

US money market fund assets fall $22.6 bln-iMoneyNet
U.S. money market fund assets fell by $22.6 billion to $3.524 trillion in the week ended Aug. 18, the Money Fund Report said on Wednesday.

Taxable money market fund assets fell $19.8 billion to $3.078 trillion, while tax-free assets fell by $2.8 billion to $446.1 billion, according to the report, published by iMoneyNet.

Yields on taxable money market funds were unchanged at a record low of 0.07 percent, while tax-free yields slid to a record low of 0.10 percent from 0.11 percent the prior week.

While it might be intuitive to think that people are rushing to dividend paying blue chips as alternative to luck laster US money market, there's potentially a buildup of counter US Dollar action here, which globally respected currency is it?


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