TFDXX
BlackRock Liquidity Funds FedFund Institutional Shares
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SGOV & TFDXX (mmf) for me. why make it more complicated?
Bonds don't offset equity losses (investment risk) better than a money market. In fact, bonds have quite a bit more investment risk as you can lose principle if you need to sell before maturity. The U.S. government would need to collapse before you would lose your principle with a money market like TFDXX. The only possible scenerio that an 18 year old should own bonds are if they are in the highest tax bracket and buy muni bonds. It just doesn't make sense otherwise.
Not to me it isn’t. You can get 4.2% in something like TFDXX and have same day liquidity.
move cash to brokerage, buy TFDXX and earn the fed funds rate https://www.blackrock.com/cash/en-us/products/282628/blf-fedfund
TFDXX is around 4.5 +/- 20 basis.
I don't know. My cash is sitting in TFDXX (a very short term treasuries fund) paying 5.25%. I don't see any reason for demand to increase for long term US GOV debt unless FED steps in to buy the excess, which creates a whole new set of problems. But who knows, maybe banks and foreign countries are already lining up to buy our 2024 debt and rates fall back to 3%. So the short answer is I think long term rates go up which means they will go down since I'm wrong more often than right.
Damn what a commercial for TFDXX
Commodity stocks trade at a lower PE. XOM is safe and many hold it because of its status as a dividend aristocrat, but with Blackrock's Fed Fund Mutual Fund (TFDXX) paying 5.25% yield monthly at zero risk, you need to ask if XOM's dividend yield is high enough or should it's stock price be closer to 90 before you invest.
TFDXX through Merrill does the same thing. Even acts as collateral for cash secured puts.