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

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

Рет қаралды 23,136

Күн бұрын

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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Пікірлер: 19

@davidwysocki1004 2 ай бұрын

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

@CentralNH 2 ай бұрын

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

@arkrainflood 21 күн бұрын

QUESTION: regarding zero coupon bonds, is the day count calculated from settlement date to the maturity date ? OR only the days between those two dates?

@jimc9222 2 ай бұрын

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

@AnthonyLopez-di5vv 2 ай бұрын

@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 2 ай бұрын

Really good conversation.

@priola7587 2 ай бұрын

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 2 ай бұрын

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.

@lhetrick1 19 күн бұрын

For someone nearing retirement and wanting to to protect against a sequence of returns event, what about deferred fixed annuities? I understand you can lock in an interest rate and get the entire principal back at the end of the term.

@Fidelity 19 күн бұрын

Thanks for the comment on this video. We can provide insight into deferred fixed annuities and point you to some helpful resources. First, let's review some background to ensure we're on the same page. For background, annuities are investments issued by insurance companies that can be used to help build a guaranteed income stream or a retirement nest egg. A deferred fixed annuity offers a guaranteed rate of return, with tax deferral, over a set time period. Interest rates for deferred annuities can be guaranteed for at least 3 and up to 10 years, and earnings are only taxed upon withdrawal. There are no IRS contribution limits for these instruments. You can read the article below to learn more about annuities: Understanding Annuities www.fidelity.com/learning-center/personal-finance/retirement/what-is-an-annuity If you have questions about our annuity products, it is best to contact our Annuities team. They are available Monday through Friday, 8:00 a.m. to 8:00 p.m. ET. To reach a representative, follow the link below and click "Start a conversation" to get their contact information. Annuities: www.fidelity.com/annuities/overview Let us know if you have any other questions.

@lhetrick1 19 күн бұрын

@@Fidelity Sure. We can connect. But first; about the deferred fixed annuities; do you get the principal back along with the interest at the end of the term?

@Fidelity 18 күн бұрын

Thanks for following up about this. Since each annuity has its own features and payout choices, we recommend contacting our Annuity Team directly. They're best equipped to speak to the specifics of the deferred fixed annuities we offer and can help answer any follow-up questions you may have. You can learn more about our deferred fixed annuity offering on the page below. To find our Annuity Team's contact information or to schedule an appointment, simply click the "Talk to us about annuities" button at the top of the page. Deferred fixed annuities: www.fidelity.com/annuities/deferred-fixed-annuities/overview We appreciate your interest in Fidelity; please let us know if you have any other questions.

@stevehinton5300 2 ай бұрын

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

@lawrencefeldman462 2 ай бұрын

Fidelity customer service is garbage beware.

@g.t.richardson6311 2 ай бұрын

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

@boby115 2 ай бұрын

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

@wa210 2 ай бұрын

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 2 ай бұрын

@@wa210 agree fidelity cd offerings are the best