Now, though, it’s a different world: Interest rates, or yields, have risen significantly.
It is debatable whether it’s wise to lock in higher interest rates now, or stick with shorter-term holdings until it’s clear that the Federal Reserve is done raising interest rates.
But the time to appreciate the benefits of fixed-income holdings like money market funds and Treasury bills is already here.
For the moment, it’s possible to get safe returns that are beating inflation.
But Stocks Are BoomingStill, the returns on short-term fixed-income investments are likely to be in the mid-single digits, at best.
Persons:
it’s, That’s, Tesla
Organizations:
Federal, Nvidia, Microsoft, Meta