NEW YORK, Sept 29 (Reuters) - Soaring interest rates are providing investors with attractive alternatives to stocks, complicating the picture for equities in an already-vicious year.
Register now for FREE unlimited access to Reuters.com RegisterThat calculus has drastically changed as the Fed hikes interest rates to stave off the worst inflation in decades, bolstering yields on everything from Treasuries to money markets.
Money market funds took in $30 billion in the latest week, according to Refinitiv Lipper, while equity funds, taxable fixed income funds, and tax-exempt bond funds all had net redemptions.
"We are definitely getting a resizing of that now.”Reuters GraphicsOf course, the alternatives to stocks are far from risk free.
Still, the robust yields are likely to continue presenting a challenge to stocks, investors said.