For another, bond returns, which are positive for the calendar year, have flagged recently.
Only money market funds — often dismissed as a form of “cash” and not included as one of the major asset groups — are in an unequivocally positive position.
As the Fed raises its benchmark federal funds rate, money market fund rates follow.
The good times for money market funds aren’t over quite yet.
The stock market over long periods tends to outperform bonds and cash investment, but at the cost of much greater volatility.
Persons:
Bonds, —, ” Peter G, Crane, Daniel Wiener
Organizations:
Federal Reserve, Crane
Locations:
Newton ,