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Managing your investment program in today's market. (Money Management Matters).(Brief Article)

Government Finance Review

| June 01, 2002 | Larson, M. Corinne | COPYRIGHT 2002 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Interest earnings from investments often are an important revenue source for governments. In today's markets, historically low interest rates make this especially difficult. Investors of public funds may be tempted to chase yield by extending maturities too far into the future or by purchasing exotic securities. However, these investment tactics add volatility to the government's portfolio and should be avoided.

Since history tends to repeat itself, investors would do well to remember the highly publicized investment losses of 1994. From California to Maine, public entities lost millions of dollars when the market value of their investments fell because of rising ...

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