Investors are continuing to pour cash into money market funds, thanks to their juicy 5% yields.
In the month of January, money market funds typically see outflows after having big inflows in December, she said.
That's because there is generally a lag between the cuts and money market fund yields coming down.
Still, even as yields in money market funds eventually go down, they will still be attractive, said Peter Crane, founder of Crane Data.
Typically, retail investors have an allocation of about 5% or 10% in cash, including money market funds.
Persons:
Deborah Cunningham, Cunningham, Peter Crane
Organizations:
Bank of America, Federated Hermes, Crane Data, Investment Company Institute