Market uncertainty and high short-term interest rates have contributed to record assets in cash equivalents such as money market funds. With all this cash on the sidelines, many investors want to know when to redeploy cash back into the market. Looking at historical Federal Funds interest rate cycles, our analysis suggested that redeploying cash into a diversified 60/40 portfolio slightly before a cycle peak, at the peak, or after the peak may offer better results than cash. Adding to duration within fixed income during these periods has historically been beneficial, while U.S. large-caps have tended to fare better among equities.

Our experts join together for a discussion of opportunities, risks, and portfolio positioning as investors consider when and how to redeploy cash.

Caleb Fritz, CFA®, T. Rowe Price
Jeffrey DeVack, CFA®, T. Rowe Price
Som Priestly, CFA®, T. Rowe Price
Terry Davis, T. Rowe Price

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