Federal Reserve Holds Rates Steady, Benefiting Cash Holders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18h ago
0mins
Source: CNBC
- Rate Stability: The Federal Reserve's decision to maintain the federal funds rate between 3.5%-3.75% means that borrowing costs for short-term and variable-rate loans will not decrease, providing cash holders with stable income expectations.
- Money Market Appeal: Although the annualized seven-day yield has dropped to 3.5%, money market funds still offer higher returns compared to the national average savings account yield of 0.61%, attracting many investors seeking better returns.
- Liquidity Management: Financial planner Winnie Sun recommends increasing cash allocations to 5%-20% to mitigate potential layoff risks, employing a six-month CD ladder strategy to lock in yields while ensuring liquidity.
- Short-Term Treasury ETFs: Investors can opt for short-term Treasury ETFs, such as the iShares 0-3 Month Treasury Bond ETF, which offers a 3.59% yield and a low expense ratio of 0.09%, providing a solid option for those seeking stable income.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GS is 848.09 USD with a low forecast of 604.00 USD and a high forecast of 1048 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 936.810
Low
604.00
Averages
848.09
High
1048
Current: 936.810
Low
604.00
Averages
848.09
High
1048
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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