Where to move your money with rates poised to fall

Published On Sep 13, 2024, 5:00 AM

The article discusses strategies for reallocating investments in anticipation of falling interest rates due to an upcoming Federal Reserve rate cut. It suggests that with high-yield savings accounts and CDs likely to decrease in rate offers post-cut, investors should consider converting cash into long-term bonds to lock in higher yields. The article highlights the benefit of bond purchases at current rates before they decline further, encouraging a mix of bond and cash investments and advocating for a bond ladder for predictable income. It cautions against hasty moves and emphasizes the safety of cash holdings.

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Investors may find an advantageous entry point into long-term bonds as interest rates are projected to fall. This could lead to an appreciation in bond prices, benefiting those who lock in higher yields now.

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