PSHAX vs VMFXX [PIMCO Short-Term vs. Vanguard Fed Money Market]

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
LtEinhorn
Posts: 1
Joined: Wed Jan 13, 2021 4:21 pm

PSHAX vs VMFXX [PIMCO Short-Term vs. Vanguard Fed Money Market]

Post by LtEinhorn »

Employer plan has these two funds that I am considering as "cash-like" option to move some money into as hedge against coming market correction. Looking for closest thing to stuffing some cash into mason jars in case Dow goes to 18k in the next few months. Leaning heavy to VMFXX but not sold yet - thoughts?
User avatar
David Jay
Posts: 10021
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: PSHAX vs VMFXX [PIMCO Short-Term vs. Vanguard Fed Money Market]

Post by David Jay »

LtEinhorn wrote: Wed Jan 13, 2021 4:32 pm Employer plan has these two funds that I am considering as "cash-like" option to move some money into as hedge against coming market correction. Looking for closest thing to stuffing some cash into mason jars in case Dow goes to 18k in the next few months. Leaning heavy to VMFXX but not sold yet - thoughts?
Welcome to the forum!

VMFXX is “bulletproof” but current return is essentially zero. Sounds a lot like a Mason jar.

Pimco fund is short term bonds, it will have minor volatility but is fine if you know you will keep the money in the fund for 1-2 years.

Of course, we would not recommend trying to time the market by moving funds into and out of stock funds. What we would recommend is establishing a stock-to-fixed income ratio (we call it your Asset Allocation) that you can live with through thick-and-thin and hold it regardless of market condition. We teach that Asset Allocation is the primary “control knob” between growth and stability. Wiki here: https://www.bogleheads.org/wiki/Asset_allocation
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
Post Reply