There’s a tug-of-war between investing in cash and long duration bonds in today’s interest environment.
Why it matters: The longer-end of the yield curve may look more appealing since anticipation is building about interest rate cuts. Morningstar’s economics team and market watchers are predicting the Federal Reserve will lower rates more than once in the final months of 2025. What may matter more is the time horizon for your financial goals.
Morningstar Inc Portfolio Strategist Amy Arnott has examined why for some investors, sticking with cash is a less risky and better approach.
9 Questions on Cash Investments
- Let’s start with an explainer. What is cash?
- Interest rates are a popular topic now. The Federal Reserve is expected to announce its rate decision this afternoon. Morningstar’s economics team and market watchers are predicting lower rates. Should bond investors swap short-term Treasury…
