The St. Louis Post-Dispatch wrote late last month, "Got cash? Here is what to do with it now." It says, "While there is no return to the 5 percent money market yields savers got a decade ago, there is some relief. If you work at it, you can find money market funds yielding 1.5 percent and two-year certificates of deposit (CDs) or U.S. Treasury bonds yielding more than 2 percent. As investors worried about inflation and rate increases by the Federal Reserve and central banks around the world, the Dow Jones Industrial Average and Standard & Poor's 500 entered a correction of more than 10 percent this month." The piece explains, "After earning only 0.03 percent in early 2011, some money market funds, such as the Vanguard Prime Money Market Fund, are now yielding close to 1.5 percent. The average for the largest 100 money funds is 1.17 percent, said Peter Crane, president of money fund research firm Crane Data. Money fund yields should rise about 0.25 percent with each coming Federal Reserve rate hike, Crane said. Yields could even drift to about 3 percent by the end of 2019 if the Fed raises rates twice this year and three times next year, as is widely expected. A more aggressive Fed could nudge money market yields even higher. Do not confuse money market mutual funds with money market accounts at banks."

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2025 2024 2023
January December December
November November
October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2022 2021 2020
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2019 2018 2017
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2016 2015 2014
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2013 2012 2011
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2010 2009 2008
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2007 2006
December December
November November
October October
September September
August
July
June
May
April
March
February
January