Last week the U.S. stock market experienced its biggest one-day decline in several years. A rapid yield increase on the 10-year Treasury note triggered the stock market route.
The market runup in January was due to investor expectations that the Federal Reserve would soon start to ease interest rates.February reversed that enthusiasm, and the stock market gave back almost all of those January gains.
My advice is to stop trying to guess what will happen with interest rates and instead take advantage of the yields you can earn on short-term investments.
This post originally appeared at Investors Alley.