Market warning: ‘Get out of cash now,’ strategist says

2023 was a year of volatility and uncertainty with higher interest rates, causing many investors to park their money in cash. As we head into 2024, inflation seems to be cooling, and the market is beginning to recover. With the Federal Reserve signaling they will maintain higher interest rates for longer, it seems that strategy may be outdated. BlackRock Americas iShares Investment Strategy Head Gargi Chaudhuri joins Yahoo Finance to break down the state of the market and what investors need to consider for 2024.
Chaudhuri explained her stance for the near term. “I think we’re going to hear from [Fed] Chair Powell that it’s too premature to start talking about a rate cut. What this means for investors, though, is historically when we look at the period, six months into the first cut or six months after the first cut, and then the period of the pause, we found that where investors do the best is actually in that rate pause period,” Chaudhuri said. “So whether you’re in the bond markets, in the equity markets, investing in this pause period is really important.”

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