FYI: Just a few short years ago, many investors were feeling lackadaisical about their cash holdings, and it was hard to blame them: Yields on most cash products fell somewhere between zero and abysmal.
But now that the Federal Reserve has been lifting short-term rates for several years running, cash yields have begun to compel again--at least relative to other investment types. Many money market mutual funds are yielding well over 2% these days, while longer-term CD yields are closing in on or over the 3% mark. When you consider the kind of volatility that both stock and bond investors were forced to endure in 2018, it's little wonder that many investors yanked dollars from long-term mutual funds toward the end of last year and steered the money to cash instead.
Regards,
Ted
https://www.morningstar.com/articles/908433/investors-we-need-to-talk-about-your-cash.html
