Is It Time to Ditch Your Money Market Fund for Bonds?
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In this week’s newsletter:
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After a week filled with macroeconomic news, stocks emerged unscathed and bonds stopped the bleeding seen in recent weeks, despite the Federal Reserve’s even stingier outlook for rate cuts. For the second month in row, there was a softer-than-expected reading on inflation from the Consumer Price Index report. Find out why Morningstar chief US economist Preston Caldwell says it was “as good as we could possibly hope.”
The CPI report was followed just hours later by the Fed’s latest decision on interest rates. Even against the backdrop of better inflation, the central bank signaled less willingness to lower rates in 2024. However, the stock and bond markets shrugged off that hawkish message. Caldwell thinks the Fed is being too pessimistic. You can find his outlook in his interview with Ivanna Hampton.
For now, at least, it does seem the Fed’s next move will be to lower rates. Money market funds constitute one area that will feel any cuts right away. It may be time for investors who? took advantage of high yields by investing in these funds to think about moving that money. Sarah Hansen explains.
These days, it seems like we can’t go one newsletter without mentioning Nvidia. This week, we’ve got a twist on the story of the stock’s big rally. Gabe Alpert combed through Morningstar Direct and found three large-cap growth funds that haven’t owned Nvidia. Check out his story on how these funds have fared.
Nvidia isn’t the only chip stock that’s soared. Broadcom has also rocketed higher, and like Nvidia, it now has a stock split ahead. Here’s what you need to know.
Lastly, the same question always pops up in an election year: What will it mean for the stock market? John Rekenthaler took a look, and as always, he has a surprising conclusion.
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