Back in June you received a letter that stated that Cambridge was going to move all money market funds to an FDIC insured product. I wrote to you all in the update letting you know that there was nothing you needed to do at that time and that I would be working out a way to deal with this issue. The work-around was that I moved the majority of the money from the FDIC insured product back to a money market product for most of the cash that we don’t have invested otherwise. We are using a money market fund that pays in line with what other money market funds are paying, though it fluctuates with the short-term available rates in the market. Additionally, I have scheduled-out a move for a small amount each month back to the FDIC insured product from the money market product for fees that come out of the account. The reason we don’t have more in the FDIC account is that it only pays around 1⁄2 of 1%. If you have any other questions about this issue don’t hesitate to reach out.
Mainstream Media Noise when the market has a bad day:
Recently we witnessed the market (we will use the DOW 30 as the proxy for the market) drop about 2.6% on 8/5/24. Mainstream Media ran headlines such as “blood bath”, “Largest drop since 20xx”, “What should investors do in times like these”. I even received a call from one of the local TV stations (6, 8, 13) asking me if I could be interviewed to comment on the drop in the market. As this was the first time this I had ever been asked to be interviewed I had to reach out to my compliance department to ask them what the compliance protocol was on “live TV interviews”. One section of compliance sent me a long list of what needed to be done, and the other division sent me an email stating that there is not much that needs to be done as it is live. Too bad I had mixed signals or your advisor would have been on the local news. By the time compliance had gotten back to me it was too late to run anything.
Read the full article about Welcome to the 3rd quarter 2024-economic and investment update.