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Should You Reconsider Money Market Funds?





TYes, it is definitely time again to pick up money market funds.

From Morningstar:

Admittedly, money market funds are a bit boring, and you may well have given up on them when interest rates fell to historic lows during the past few years. But perhaps it's time to reacquaint yourself with them. After all, the Fed has been raising rates again since last summer, buoyed by a strengthening economy. The Fed funds rate now stands at 3.50%, and yields on money market funds are ticking up in unison. In fact, these funds are beginning to look at least as attractive--if not more attractive--than short-term bond funds, into which many investors have parked cash in the past few years. Moreover, with most bonds valued rather richly, money market funds might garner renewed interest.

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