playbook:

Things have changed a lot in a week.  Down to 9.86 today.  ASABX doesn't seem to be alone though.  It hard for me to determine what causes this.

Playbook.

What is causing this is a credit freeze, forced sales and massive redemptions.  There are lots of sellers and few buyers and so it is a buyer's market.

playbook:

Things have changed a lot in a week.  Down to 9.86 today.  ASABX doesn't seem to be alone though.  It hard for me to determine what causes this.

Playbook.

What is causing this is a credit freeze, forced sales and massive redemptions.  There are lots of sellers and few buyers and so it is a buyer's market.

Hi Lele.  I thought you were gone after not seeing any activity from you for a while and your profile had been deactivated. 

My FA thinks it's the commercial paper mostly that is causing the losses, but I don't know if I accept that.  Assuming we get back to some normalcy in the credit markets would you expect the NAV to increase to prior levels?  When I bought into the fund 5 months ago it was $9.98.  The credit markets were basically normal at that time if there is such a thing.  There have been no actual Fed rate changes during that time, but the fund dropped .75% on an expectation of a 50bp increase in rates a couple of months ago.  Now that the expectation is for a 50bp decrease in the Fed rate soon, I would expect an increase in the price of .75%.  Therefore, logically I would expect the NAV to increase to around $10.05 in a stabilized environment plus the rate reduction.  Do you agree that would be logical?

Playbook

playbook:

Hi Lele.  I thought you were gone after not seeing any activity from you for a while and your profile had been deactivated. 

Well, lili is gone but lele is back, lol!

playbook:

My FA thinks it's the commercial paper mostly that is causing the losses, but I don't know if I accept that.  Assuming we get back to some normalcy in the credit markets would you expect the NAV to increase to prior levels?  When I bought into the fund 5 months ago it was $9.98.  The credit markets were basically normal at that time if there is such a thing.  There have been no actual Fed rate changes during that time, but the fund dropped .75% on an expectation of a 50bp increase in rates a couple of months ago.  Now that the expectation is for a 50bp decrease in the Fed rate soon, I would expect an increase in the price of .75%.  Therefore, logically I would expect the NAV to increase to around $10.05 in a stabilized environment plus the rate reduction.  Do you agree that would be logical?

Playbook

I would think of it this way.  You initially had planned to invest in AIBAX (or whatever fund it was) and that fund is down considerably more than ASBAX so by waiting you are buying lower than you would have had you DCA'ed in earlier.