Money market funds were a hot item this year, but it may be time to think about shifting some of that cash into other investments.
Investors flooded into the funds, bringing the total assets to $5.89 trillion for the week ending Dec. 13, according to the Investment Company Institute.
The Crane 100 Money Fund Index currently has an annualized 7-day yield of 5.19%.
Yet, if rates go down next year, as expected, the yields in short-term instruments such as money market funds and high-yield savings accounts will follow suit.
The firm also likes stocks with high dividend growth and free cash flow , such as Kroger , CVS Health and Qualcomm .
Persons:
Josh Brown, VIG, Wolfe, Barry Glassman, Glassman
Organizations:
Investment Company Institute, ICI, Federal Reserve, Ritholtz Wealth, Wolfe Research, Cola, Exxon Mobil, Kroger, CVS Health, Qualcomm, Investors, Wealth Services, Dodge, Cox Income Fund, Fed, CNBC