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Subject:  Negative Income Date:  3/14/2008  7:22 AM
Author:  dmcnic Number:  35277 of 504

Good grief. There are two broker-sold funds that are yielding below 1% but have annual expenses that exceed that. There's a great way to lose money. Avoid BB&T US Treasury money market fund and Merrill Lynch WCMA Treasury Fund.

Five-year TIPS hit a yield of 0.01 percent on March 10. They traded below zero briefly on March 9. While the principle increases with inflation, the interpretation is that investors would completely sacrifice income versus a current yield bet in similar duration Treasuries. Wow. Are investors so completely fearful that the run into the security of Treasuries is over-done?

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