An end to T-bill and chill?

For more than two years, high interest rates have offered healthy cash returns to investors without the volatility, but with central banks starting to cut rates,, is now the time to move away from cash?

Ever since the major developed market central banks began raising interest rates in late 2021 in response to the post-COVID surge in inflation, investors have been moving their capital to money market funds.

Coined ‘T-bill[1] and chill’ by bond investor Jeffery Gundlach, investors have binged on this phenomenon for the last two years. However, the Bank of England and the ECB have started cutting rates. Furthermore, with the US Federal Reserve (Fed) having cut interest rates by 50bps last week, could it be worth investors trying something new?