A Better Bet Than Money Markets?

Short and ultrashort bond funds have higher yields

Jan van Mourik has watched his equity portfolio tank by 30% in the past two months and, by all rights, shouldn't be in the mood to take on more risk. Still, the 37-year-old database administrator for SynQuest in Clifton Park, N.Y., puts in $1,100 each month, mostly into tech stocks. He does keep an emergency cash cushion in a money-market fund, but it's just $1,500. That could be a problem. Should he need to come up with some fast money, he may be forced to sell stocks at a loss.

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