Investors may soon see a change in the way the value of their money market shares is reported. While money market shares have historically been reported as one share at $1, many fund managers are beginning to report daily fluctuations in value. You’ll find the reasons behind the new policy in this week’s first article. We next look at the idea behind the US Treasury minting a large denomination platinum coin to be used for financial expenditures. Ben Bernanke believes we need to continue the stimulus to aid economic recovery. His comments on the subject are covered in the next piece by Brai Odion-Esene. While investors remain very concerned about the economy, there are bright spots to be seen in the markets. Liz Ann Saunders writes about these in our final article.
Money Market Fund Managers Disclose Daily Asset Values– A growing number of U.S. money market fund companies are voluntarily disclosing daily fluctuations in net asset values. The trend, which includes Fidelity Investments, Charles Schwab, Federated Investors and Goldman Sachs, comes as regulators press the industry for more transparency. Some observers see the voluntary disclosures as a way to head off more costly regulations. http://www.reuters.com/article/2013/01/11/us-funds-fidelity-moneymarket-idUSBRE90A14420130111
How The Platinum Coin Could Work (or Backfire)- The unusual move of minting a large platinum coin might shock politicians into cleaning up the fiscal mess. But the rest of the world may see it as inflationary. The article by PIMCO’s co-chief investment officer, Mohamed El-Erian, explains why. http://advisorperspectives.com/commentaries/pimco_011113.php
Bernanke Says U.S. Economy Still Needs Stimulus To Recover– Federal Reserve Chairman Ben Bernanke said the central bank must stick with stimulus policies to help the U.S. economy get back on its feet. The job market has yet to show substantive signs of improvement, he said at the University of Michigan’s Gerald R. Ford School of Public Policy. “We are still in a relatively fragile recovery,” Bernanke said. https://mninews.marketnews.com/content/bernanke-gives-no-sign-ready-ease-aggressive-pol
The More Things Change, The More They….. – There seems to always be another crisis around the corner but over the past several years we’ve seen that it can be detrimental for investors to overreact. Although there are concerns all over the world, there are also bright spots. Liz Ann Saunders of Charles Schwab & Co. explains why. http://advisorperspectives.com/commentaries/schwab_011413.php
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John R. Day and Bill Ennis