Exact(9)
The Fed has cut its target for the benchmark federal fund rates to 4.25percentt from 5.25percentt last summer.
Towers Watson, a consultancy which advises many a pension fund, rates government bonds as "highly unattractive" at current levels.At best, bond investors will earn modest returns in a Japanese-style stagnation.
When a strong demand for some particular service appears but officials prefer not to raise their "general fund" rates, a legislative body may vote to mandate a "special" rate.
"So, despite a rise that would take almost a half-century to match at today's money market fund rates, the odds of making anything trading in and out over this time frame were 50 to 1 against you," Mr. Torray said.
He points out that adjustable-rate mortgages were used much more in expensive cities, a trend that became more pronounced as the fund rates fell.By looking only at the effect of monetary policy on house prices, Messrs Bernanke and Greenspan also take too narrow a view of the potential effect of low policy rates.
Still, with all those embedded gains, the flagship fund rates a poor five on our tax-efficiency scale of one to five.
Similar(51)
Consider the fund's ratings by Morningstar or other independent fund rating agencies.
Lipper Inc. inaugurated its fund rating system, known as Lipper Leaders, in late 2001.
How does Value Line's fund rating system compare with Morningstar's?
Fund rated for three periods only; maximum allowable grade A. NA: Not available.
Jan . 30 when it cut the discount and Fed funds rates.
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