FYI: Over the past 10 years, it’s become conventional wisdom that holding cash doesn’t pay. Ever since the Federal Reserve famously cut its benchmark federal funds rate to zero in the wake of the financial crisis in 2008, cash has yielded close to nothing.
But that’s changing. After six Fed rate hikes since December 2015—and another one likely in June—cash is starting to look more attractive. The overnight federal funds rate is expected to near 1.9% next month, and could hit 2.4% by year-end if the “four rate hikes in 2018” camp is right.
Regards,
Ted
http://www.etf.com/sections/features-and-news/under-hood-short-term-bond-etfs?nopaging=1
