Profile picture for user The Wealth Advisor

The Wealth Advisor

Contributor

The Wealth Advisor is today’s most relied-on source of news and education for planners and advisors. We scan the news so you don’t have to, sending you what you don’t want to miss…but don’t always have time to find yourself without poring through dozens of publications. The Wealth Advisor sends you a handy once-a-week list of the most important news, hand-picked by our staff for its importance to investment advisors and their practices.

Morningstar Asset Management: Adjusting To 5% Cash

(Morningstar) Money markets are all the rage today.

Estimated net flows from Morningstar, Inc. suggest that, except for the first quarter of 2020, investors are pouring more money into money markets than they have in years.

For good reason.

With annual percentage yields around 5%, money markets look compelling not only relative to traditional savings accounts, where yields are paltry, but also relative to the broader stock and bond markets, where return potential could be higher than 5%, but the potential for loss is also generally greater.