The stock market has been strutting into the spotlight lately, with talk — however premature — of a new A.I.-driven bull market popping up nearly everywhere you turn.
Amid all the hoopla, you can easily miss the solid returns being posted by far less glamorous but always important and, at the moment, compelling asset classes: fixed-income investments, including bonds and cash.
Especially for those with short time horizons — whether you’re in retirement or close to it, or saving for a house, education, a car, a vacation or any other worthwhile purpose — these lower-risk investments are worth a close look.
Until a little over a year ago, when interest rates were about as low as they could go, a mantra on Wall Street was TINA. It’s an acronym for “there is no alternative” to the stock market, certainly not from fixed-income investments.
Now, though, it’s a different world: Interest rates, or yields, have risen significantly. That’s bad if you’re borrowing, but if you have money to invest or stash somewhere safe so you can pay your bills, there are plenty of appealing options.
To continue reading, view the full article on the New York Times website here: https://www.nytimes.com/2023/06/23/business/stocks-bonds-money-market-funds.html
