Putnam closes Money Market Fund – Should Baby Boomers be worried?
I’m usually pretty unflappable when it comes to temporary fluctuations and upturns/downturns in the market. However, when a big firm like Putnam Investments closes a $12 BILLION money market fund to avoid huge losses, I get a little concerned. Just a little. (Note that this fund is only open to institutional investors, but still….)
Money market funds are among the safest kinds of investments, because they invest in short-term instruments like certificates of deposit, Treasury bills, and commercial paper. These are very liquid investments, used to hold money temporarily, and they are not insured by the FDIC.
So what’s going on here? I’m going to do some more research and get back to you. I don’t think we baby boomers should be worried. But….