Move cash off the sidelines to seek incremental yield and help minimize interest rate risk, but be aware of the different levels and kinds of risk some funds may take.
- Don’t get squeezed by safety. Staying on the sidelines in low-return asset classes like cash has the potential to provide negative real returns (after inflation).
- Put your cash to work. Ultra-short duration strategies can help you stay invested, seek income and minimize interest rate risk.
- Take action. Consider low duration and floating rate loan instruments, but be aware of the different levels and kinds of risk these funds may take.