The Downside of Falling Interest Rates
Briefly

Investors are faced with tricky choices as the Federal Reserve is expected to cut short-term interest rates, impacting both stock and safer investment avenues.
While falling interest rates typically boost the stock market, they can be detrimental for investors prioritizing safety in their investments.
For those needing money soon, the declining yields of money market funds and Treasury bills may tempt a shift to riskier assets, despite recent market instabilities.
Having a long-term investment strategy focusing on low-cost index funds is beneficial, but for short-term needs, safety must outweigh the allure of higher yields.
Read at www.nytimes.com
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