Click to enlarge.
Hey! I actually found an exponential trend chart that hasn't ended in abject failure yet. Although we did get a bit ahead of ourselves in recent years, we're pretty much right on trend!
This is why professional money managers are no doubt paid the big bucks. Sure, as retail investors we could park the money directly in money funds ourselves. Or better still we could also just buy short-term treasury bills directly from the government and hold to maturity. At least there aren't any fees! That would cut out the parasitic institutional middle man though. Where's the fun in that?
Money Market Funds - Risks and Benefits
Why Would I Use Money Market Funds?
Investors who want a decent return from a relatively safe investment use money market funds.
Decent return? Relatively safe? Seriously?
The investments are typically liquid, meaning you can usually get your money out within a few business days.
And do what with it? Buy stocks AFTER they have doubled yet again? Seriously?
You can also take advantage of rising interest rates by keeping your money in an investment that will adjust to the markets.
Take advantage of rising interest rates? Seriously?
Weighing the Consequences of a Money Fund Overhaul
St. Louis Fed: Custom Chart