INVESTORS should begin to consider moving out of the safety of cash, either into fixed income or equity investments, say strategists.
This is because once the US Federal Reserve begins to reduce interest rates – it has indicated three cuts this year – the speed at which cash rates fall is likely to be rapid.
Around US$9 trillion is invested in money market funds globally. For the US, where data on fund flows is more easily available, assets in money market funds declined by about US$60.9 billion in the week ended Mar 20, to US$6.05 trillion.
Based on data from the Investment Company Institute (ICI), the decline is in institutional money market funds, which fell by US$71 billion. Retail money...
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