It's very perplexing to us why investors would plow money into money market funds. This
report suggests that $13B was transferred into these funds yielding 0.03 percent. Considering that many a dividend paying stock like Verizon (VZ) or even Bristol Meyers (BMY) have yields in the 4-6% range its difficult to grasp why somebody is willing to accept nothing. Assume this move goes back to the Dubai scare or even Greece. Either way, until this money comes flooding in the US stock market its difficult to see any push to a top.
Taxable money market fund assets rose by $10.4 billion to $2.88 trillion, while tax-free assets rose by $2.6 billion to $408.7 billion, according to the report, published by iMoneyNet.
Yields on taxable money market funds held at a record low of 0.03 percent for a third consecutive week. Tax-free and municipal money-market fund yields set a fresh all-time low of 0.03 percent, down from 0.04 percent a week ago.
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