bond fund money | market fund | Money market

Link


I really have no idea what the guy is talking about, but it sounds inportant enough for me to sticky it onto the blog so I'll remember to read it in greater detail....


"The answer lies in how you define risk. Money market investors don't risk losing money but they do risk missing out on return elsewhere. If market interest rates move lower, money market yields, which are simply a snapshot in time and no guarantee of what an investor might earn over the next year, will fall. Bond prices and bond fund returns, on the other hand, would improve if rates move lower."


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I did a quick search on google and investopedia had this to say