The New York Times writes that, "The End of Fabulous Money Market Rates Is Near." They tell us, "While stocks and bonds have zigged and zagged, often painfully, over the last few years, one area of the markets has been blissfully steady: money market funds. For more than a year, with minimal risk, investors have been able to get more than 5 percent annually -- and substantially beat inflation -- by just parking their cash in fairly reliable places. This wonderful refuge from the market storms isn'​t disappearing. But with short-​term interest rates likely to fall soon, the shelter will become less comfortable, and it'​s time to get ready. It may be wise to start looking beyond money market funds, locking in the relatively high rates now for at least some of your money, and re-​evaluating your needs." The piece asks, "Can you afford to move some of the cash that you don'​t need immediately into bonds, which fluctuate in value yet tend to produce better long-​term returns than money market funds? And do you have excess cash that may be better invested in stocks, which are likely to produce superior long-​term returns but are unreliable over shorter periods, especially in a volatile election year? These aren’​t simple questions." The Times adds, "Largely because of declining inflation, the Federal Reserve is widely expected to start reducing short-​term interest rates at its next meeting in September.... [​But] I have no intention of abandoning money market funds entirely. In fact, if you haven'​t been using money market funds at all, you may want to start. Check whether you have money in a brokerage '​sweep account' or sitting in a bank account. If you aren'​t getting anything close to 5.​1 percent (​or higher) for your cash, you may want to switch to a money market fund and then consider what to do down the road.... For the money I need in the next year or two, money market funds will be appropriate. For nearly everything else, long-​term asset allocation using low-​cost index funds is likely to pay off."

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