1. The exchange rate comment is basically a geographical diversification comment. It is true for all investments that are confined to the US, whether they are in money markets, bonds or stocks. BTW some say that the dollar is due for an even bigger drop over time given the federal and trade deficits. If that is the case foreign investments will do even better in the long run if the investments are denominated in foreign currency.

2. The inflation argument is equivilent to the opportunity cost argument. Both arguments conclude that money market investments do not provide adequate returns. Both arguments are correct.

Here’s a quick look at some of the articles that caught my eye over the past week:

FMF shed some light on how they’re budgeting for their Disney trip. If they were regular visitors (doesn’t sound like they are, though) I’d rec…