Investment Strategy #7: Look to money market funds when interest rates are high

Stock mutual funds no longer have the potential for the greatest profits when the interest rates are high. Money market funds will not only give you the best return but will also be the safest investment since periods of high interest rates are when stock prices tend to fluctuate wildly and bonds decrease in value for every jump in the prime rate. On the other hand, money market fund interest rates increase with just about every increase in the prime rate.

However, without the prospect of capital appreciation that is inherent in both stocks and bonds, money market funds will not average the big returns you are looking for over long periods of time. Think of money market funds as your safe harbor during the storm.

Engage with us today to learn more about money market funds and how they might interest you!

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