Money Markets, Maturing CDs And Treasurys - 4/30/24 | Market Sense | Fidelity Investments

Lots of investors have money “parked” in short-term instruments like Treasury bills, CDs, and money market funds because of high short-term interest rates. As those CDs and Treasurys mature, investors may be faced with what to do with that cash - could it be fuel for the next market rally? Our panelists weigh in on that, plus the latest data on inflation and economic growth.
00:00 Intros
01:30 Latest economic headlines
04:48 Market commentary
09:37 Pros and cons of short-term cash vehicles
12:45 Watchouts when rates start falling
16:00 Difference between long and short-term rates
20:08 Jurrien’s take on the trillions in cash
22:10 Timmer’s Take
Questions? Drop them below 👇 and we’ll reply right in the comments.
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[@davidwysocki1004]

Thanks for the excellent discussion. And I agree that the stock market is the best asset class for long-term investors.

[@jimc9222]

Interesting conversation. I wish they would have discussed tips/ibonds and the Feds management of the money supply.

[@AnthonyLopez-di5vv]

@15:54 i was surprised to see cash and bonds so high, but then i noticed that this is going all the way back to 1969. I think Leanna's case for reinvestment risk is even stronger if we shorten the timeframe.

[@peterrobey1654]

Really good conversation.

[@CentralNH]

CD's what is the best way to disperse an older CD say 20k now that CDs are lowering rates and lengthening terms. Should you split to two CD's or take half reinvest and other in different account

[@priola7587]

Regarding holding short term cash, I put my emergency fund n a high yield savings account with an online bank via “raisin” at 5.25% and they have dropped to 4.75% over about 6 months. Other accounts within raisin are now higher (5.25%). I suspect these are defacto introductory rates. Is it worth chasing the highest rates? What are your thoughts?

[@wa210]

CD or T bill MONTHLY LADDER. I have over 300k in a CD monthly ladder with a CD maturing every 2-3 weeks @ different yields between 5-5.50%. The longest I went out was a 5.40% 2 year CD that pays interest monthly instead of at maturity. That interest goes back into my MM fund SPAXX within Fidelity. Currently @4.95%. As that MM builds idle cash, I roll some of that into a higher paying CD. I am retired within year and half ago, and own stocks in my self directed brokerage account that all but one pays a dividend. They are all set on the auto DRIP plan of reinvesting the dividends. IMO, the WS market/casino is wayyyy overpriced. The ultimate crash will come. When?? Who knows? But when it does, some of my cash will go back into buying quality large cap stocks that pay decent dividends. For now, happy as a clam, watching interest roll into my cash account monthly from CD's.

[@stevehinton5300]

Wish the platform was BETTER FOR PRE AND AFTER MARKET USE..!! Day trading is TRASH on Fidelity

[@lawrencefeldman462]

Fidelity customer service is garbage beware.

[@g.t.richardson6311]

Never had an issue with it, phone answered promptly, calls returned,

[@boby115]

⁠​⁠@@g.t.richardson6311 , same here, never had a problem.

[@wa210]

Some locations yes. Still Fidelity offers way more than other brokerage houses. I am in Fidelity but manage my fathers money in a Schwab account and his 401k in Vanguard. Fidelity in at least CD's has far more to choose from.

[@g.t.richardson6311]

@@wa210 agree fidelity cd offerings are the best

[@Osgood-iz5rs]

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