Naming investment all-stars for the first half of 2022 is somewhat like naming an all-star on Minnesota Twins teams in the lean years. There’s somebody who’s among the best players on the team, but is the performance worth celebrating? Yet baseball has a requirement that every team be represented with an all-star. In that spirit, I would like to name money market funds as my 2022 investment all-star.

Give me a second as you roll your eyes. Yes, money market funds are a top performing fund just because they didn’t lose money. It wasn’t a tough competition. That’s not why they are my all-star though. They are an all-star because they are quickly becoming a top choice for your emergency fund dollars. That’s right – money market funds are paying a competitive yield again.

Most money market funds are paying above 1% interest today, and you can expect that rate to keep rising as the Fed continues to raise interest rates. Compare that to your bank account or default cash option in your brokerage accounts. Yields in those funds still around with 0.1%. Banks are flush with cash and don’t need your deposits. If you’re sitting on a lot of cash, consider a money market. It has daily liquidity, a steady $1 value, and a better than average interest rate.

About the Author:

John has more than ten years experience as an Investment Advisor. He focuses on devising and maintaining portfolios that meet individuals’ needs, investment research, and investment strategy. John has been recognized as a “FIVE STAR wealth manager” by Twin Cities Business Magazine 2016-2022. He is a CFA charterholder and CERTIFIED FINANCIAL PLANNER™ Professional.

Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.