This podcast episode focuses on the potential shift in investment strategies from money market funds to bonds due to anticipated changes in interest rates by the Fed. If the Fed signals a willingness to cut rates, investors may lock in current high yields in money market funds, leading to potential outflows. These outflows may find their way into bonds, particularly investment-grade bonds with shorter maturities, due to their historical performance during periods of falling interest rates and the relatively low household allocation to bonds compared to stocks.
