Investment advisers urge clients away from cash after Fed rate cut

Investment advisers are urging clients to dump hefty cash allocations now that the Federal Reserve has begun its much-anticipated interest-rate easing, a process they expect to limit the appeal of money-market funds in the coming months.

On Wednesday, the U.S. central bank cut the federal funds rate by a larger-than-usual 50 basis points to a range of 4.75% to 5%, which makes holding cash in deposit accounts and cash-like instruments less appealing. “Investors need to be aware that if they’re counting on a certain level of income from that portion of their portfolio, they may need to look at something different, or longer-term, to lock in rates and not be as exposed to the Fed lowering interest rates,” said Ross Mayfield, investment strategist at Baird Wealth.

Nederland Laatste Nieuws, Nederland Headlines

Similar News:Je kunt ook nieuwsberichten lezen die vergelijkbaar zijn met deze die we uit andere nieuwsbronnen hebben verzameld.

Stocks Rise With Retail Data in Focus Before Fed: Markets WrapMost Asian stocks were poised for declines early Tuesday following a mixed session on Wall Street where traders boosted bets the Federal Reserve will this week deliver a half-point rate cut.
Bron: BNNBloomberg - 🏆 83. / 50 Lees verder »

Fed's rate cut outlook, retail real estate: Market Domination OvertimeThe Dow Jones Industrial Average (^DJI) reached a new record height, hitting just above 41,240 points, in Monday's session. However, the tech-heavy Nasdaq...
Bron: YahooFinanceCA - 🏆 47. / 63 Lees verder »