Money market funds hit record as investors jump at 5% returns

Money market mutual funds are offering the highest interest rates in decades, attracting investors looking for higher yields with lower risk. The average interest rate of 5.15% is the highest since 1999, making money market funds a compelling option for preserving purchasing power amid rising inflation.

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Relevant topic timeline:

8/23/2023

Chasing Yields With Money Market Funds

Investors should take advantage of the high yields offered by money market funds (MMF) due to the inverted yield curve and the current market conditions, which may provide a safe and reliable source of income in the near future.

8/24/2023

Could Fed Chair Powell's Jackson Hole speech send stocks plunging again?

The Federal Reserve raised interest rates to their highest level in 22 years, but experts expect the market to react less dramatically than in the past.

9/1/2023

Money market account vs. High-yield savings account: What’s the difference and which one should you choose?

High-yield savings accounts and money market accounts are similar in many ways, but the minimum deposit requirement and accessibility make them different, with money market accounts offering more flexibility and easier access to funds.

9/3/2023

Why wealthy customers are the 'most worrisome' for banks right now

Money-market fund assets reach new all-time high as interest rates attract investors, posing challenges for struggling banks that have seen deposit outflows.

9/7/2023

CHART OF THE DAY: This indicator shows the stock market is the most overvalued it's been since the dot-com bubble crash

The stock market is currently the most overvalued it has been since the dot-com bubble crash, according to Ned Davis Research, with high cash yields leading to a rush for money market funds.

9/8/2023

Money Market Funds See Biggest Inflows in 3 Months Amid Growth Concerns

Global money market funds saw strong inflows as investors sought safer options amid concerns over slowing growth in China and Europe and uncertainty regarding the Federal Reserve's interest rate outlook.

9/10/2023

Savers Earning Real Returns Again, But Most Not Chasing Higher Rates

Investors now have the opportunity to earn high interest rates on their cash deposits, with some potentially earning as much as 5% or more, marking the highest rates in 15 years, prompting financial advisors to urge savers to shop around for the best rates and avoid holding too much cash.

9/10/2023

Rising Rates Revive Fixed Income, But Beware of Surprise Taxes

Soaring interest rates have increased the popularity of fixed-income investments like bonds and money market funds in the U.S., but investors should be prepared for higher taxes on the income generated from these assets.

9/12/2023

Record $5.6 Trillion Piled Into Money Market Funds as Yields Hit 5%; Stock Rally Seen if Investors Put Cash to Work

Investors are flocking to money market funds as a safe alternative to buying stocks or bonds, with the record high net assets of these funds potentially fueling a year-end stock market rally, according to Bank of America.

9/20/2023

Fed Hikes Interest Rate Forecast, Signals More Increases; Bitcoin Price Falls

The US Federal Reserve holds interest rates steady at 5.25% to 5.50%, projects higher rates for next year, and expects stronger economic growth, causing a slight drop in Bitcoin's price.