Experts caution that holding excessive cash may not be wise, advising investors to accurately gauge their emergency needs and funds required for future opportunities.
Bank of America predicts continued inflows into money market funds despite anticipated Federal Reserve rate cuts, as attractive yields remain a major draw for investors.
Historically, when investors shift from money market funds, they typically transition to fixed income rather than equities, indicating preferences for stability in volatile environments.
Peter Crane from Crane Data suggests money fund yields closely follow Fed actions, predicting a yield reduction following any rate cut, impacting cash strategies.
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