Stepping Out of Cash: The Case for Short-Term Bonds

Published: November 14, 2024

Cash has been king for the past two years, as a perfect storm of economic uncertainty and post-pandemic
inflation pushed the Federal Reserve to hike interest rates to their highest levels in decades, leading yield-hungry investors to pour a record $6 trillion into money market funds. But with inflation easing and growth expectations retreating, the era of unusually generous money market rates is likely drawing to a close.

Read more below for why investors should consider an allocation to short-term bonds as an alternative to cash.

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