I’m as surprised to see this article in the Wall Street Journal as I was to see the one touting I-Bonds. Pigs are flying!
**Wall Street Finds New Value in Cash as Global Fears Weigh on Markets**
**As bond yields rise and stock prices wobble, cash is no longer trash on Wall Street**
**By Dion Rabouin, The Wall Street Journal, April 25, 2022**
**Worries about the war in Ukraine, China’s Covid-19 outbreak, a U.S. or European recession and surging global inflation are making a long-spurned asset increasingly popular with Wall Street’s top money managers these days: cash.**
**As stock and bond prices have retreated from records in the tumult of headlines, more asset managers said they are looking to move funds into low-risk, cash-like assets. ... Many expect such prime money market yields to keep rising as rates on money markets, short-term bonds and other cash-like investments climb with interest-rates set by the Federal Reserve.... Series I savings bonds, which track the consumer-price index, will offer a yield of 9.62% in May....** [end quote]
With rising risks and rising bond yields, TINA (“there is no alternative” to U.S. stocks) will be challenged. Investors will start shifting assets away from stocks.