2024: The Year Cash Loses its Appeal for Savers and Investors

Savers and investors who enjoyed the rising yields of cash in 2023 may need to reconsider their strategy in 2024. The Federal Reserve is expected to cut interest rates next year, prompting a shift away from cash and cash equivalents towards longer-duration bonds. Financial advisers are urging clients to diversify their portfolios and explore traditional fixed-income investments, as cash offers limited growth potential. While cash still has its place, investors should be mindful of the downsides of holding too much cash, such as missing out on potential stock market returns.