"Why the Yield Curve Is Pointing to Cash" in Sunday's New York Times. This
Paul Lim "Fundamentally" column,
discusses the many reasons why cash and money market funds are attractive. The article also ran Friday in the
International Herald Tribune (
see yesterday'
s "
Link of the Day") and Sunday in
The Oregonian (
among others). It quotes
Crane Data's Peter Crane, saying the current flat-
rate scenario is "
the best possible environment to be in cash" since there'
s almost no "
risk that short-term rates will fall through the floor". Lim'
s piece also cites the
close to 3% real (after inflation) return on money funds, the attractiveness of
5% nominal "magic number" rates, and the
growing risk of other asset classes moving down in lock-step.