How This Year’s Hottest Investment Could End Up Costing You

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Money-market funds are seeing record interest, but advisers say cash is no substitute for stocks and bonds

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https://www.wsj.com/finance/investing/how-this-years-hottest-investment-could-end-up-costing-you-a4717f20Cash has rarely been this hot on Wall Street. Financial advisers warn holding too much can burn a hole in your portfolio. With markets rocky and cash earning 5% or more, investors have boosted their holdings of money-market funds to a near-record $5.6 trillion, according to the Investment Company Institute. Both individuals and institutional investors are piling in—asset managers now have roughly one-fifth of their portfolios in money-market funds, State Street data show.This copy is for your personal, non-commercial use only.

 

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