Money market accounts still offer 5%, but these rates won’t last. Short-term yields are dropping, fast.
With the “safe 5% party” ending, you and I should skedaddle to the “11% yield afterparty” now. Fear not, my fellow contrarian—I have an extra dividend VIP pass for you.
Traders are pricing in two Fed cuts over the next nine months. Meanwhile, the industry projects money market rates to plummet to 3.8% by year end, with the 2-year Treasury yield also trending down, currently at 3.9%.
Given President Trump’s preference for lower rates, aggressive rate cuts are around the corner.
This post originally appeared at Contrarian Outlook.