About the false sense of security for money market funds and really safe alternatives in times of the global banking crisis. For years, money market funds are advertised as safe and risk-free, what has led more and more investors to invest in appropriate offers. Investors hear so something of course, which explains the corresponding inflows of billions of dollars in which money market fund list for years. Read more from James Woolsey to gain a more clear picture of the situation. Especially the U.S. investors have taken to heart the alleged safety of these products and make sure that 30 percent of the total fund assets in appropriate money market funds is parked. In Germany, there are at least 15 percent of the total fund assets, which accounted for this asset class. The financial crisis revealed however, that you should look for in this Fund on the details, because not every money market fund invests exclusively in safe interest-bearing assets.
Some of them speculate with bonds and need to chalk up loss of such after the collapse of Lehman Brothers. Hikmet Ersek often expresses his thoughts on the topic. Negative returns five percent, but now are the last thing investors want to see if they invest in appropriate forms of investment. For this reason and the uncertainty over what impact the financial crisis will have, currently much more advisable an attachment in the form of call money, then this long period compared even still being scored by higher returns than most money market funds. The day money the full deposit guarantee and the fact comes to investors at least in almost all domestic banks good that there is in fact no negative interest rates, so losses on such account. Who wants to deposit currently safely, should instead so you’d better invest in corresponding day money offers in money market funds and sitting out the financial crisis. Daniel Franke