Is it Time to Ditch Your Money Market Fund for Fixed Income?

Plus: Undervalued stocks that raised dividends, a cautious Fed, stocks and the election. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=55251&elqTrackId=b383f0ab2efe43e19aba7da303c2faba&elq=fb73262c1f4d4c75b1060bf751778ff7&elqaid=55251&elqat=1&elqCampaignId=28056) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] this week's newsletter: - [Is It Time to Ditch Your Money Market Fund for Bonds?]( - [The Fed’s Inflation Outlook Is a Little Too Pessimistic]( - [May CPI Report: Good News on Inflation, but Hold the Champagne]( - [A Cautious Fed Eyes Just One Rate Cut In 2024]( - [What Does Broadcom’s Stock Split Mean for Investors?]( - [These 3 Growth Funds Don’t Own Nvidia—and Their Returns Show It]( - [Stock Investors Have Already Won the Election]( After a week filled with macroeconomic news, stocks emerged unscathed and bonds stopped the bleeding seen in recent weeks, despite the Federal Reserve’s even stingier outlook for rate cuts. For the second month in a row, there was a softer-than-expected reading on inflation from the Consumer Price Index report. [Find out why]( Morningstar chief US economist Preston Caldwell says it was “as good as we could possibly hope.” The CPI report was followed just hours later by the Fed’s latest decision on interest rates. Even against the backdrop of better inflation, the central bank [signaled less willingness to lower rates]( in 2024. However, the stock and bond markets shrugged off that hawkish message. [Caldwell thinks the Fed is being too pessimistic](. For now, it seems the Fed’s next move will be to lower rates. Money market funds constitute one area that will feel any cuts right away. It may be time for investors who took advantage of high yields by investing in these funds to think about moving that money. [Sarah Hansen explains](. These days, it seems like we can’t go to one newsletter without mentioning Nvidia. This week, we’ve got a twist on the story of the stock’s big rally. Gabe Alpert combed through Morningstar Direct and found three large-cap growth funds that haven’t owned Nvidia. [Check out his story]( on how these funds have fared. Nvidia isn’t the only chip stock that’s soared. Broadcom has also rocketed higher, [and like Nvidia]( it now has a stock split ahead. [Here’s what you need to know](. Lastly, the same question always pops up in an election year: What will it mean for the stock market? John Rekenthaler took a look, and as always, he [had a surprising conclusion](. That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [Is It Time to Ditch Your Money Market Fund for Longer-Term Bonds?]( [Is It Time to Ditch Your Money Market Fund for Longer-Term Bonds?]( Cash won’t pay 5% forever, and strategists say bonds can be a bright spot for investors even as rates fall. Sarah Hansen [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [The Fed’s Inflation Outlook Is a Little Too Pessimistic]( [The Fed’s Inflation Outlook Is a Little Too Pessimistic]( Why we expect more than one interest rate cut in 2024. Preston Caldwell, Ivanna Hampton [May CPI Report: Good News on Inflation, but Hold the Champagne]( [May CPI Report: Good News on Inflation, but Hold the Champagne]( Housing costs remain a sore spot, but watchers see room for the Fed to cut rates in September. Gabe Alpert [A Cautious Fed Eyes Just One Rate Cut In 2024]( [A Cautious Fed Eyes Just One Rate Cut In 2024]( We think inflation will improve, allowing the Fed to lower rates twice this year. Preston Caldwell [What Does Broadcom’s Stock Split Mean for Investors?]( [What Does Broadcom’s Stock Split Mean for Investors?]( Shares of the chipmaker will carry a fair value estimate of $155 after its 10-for-1 split. Sarah Hansen [What Does Nvidia’s Stock Split Mean for Investors?]( [What Does Nvidia’s Stock Split Mean for Investors?]( The semiconductor giant’s stock now carries a fair value estimate of $105 after its 10-for-1 split. Sarah Hansen [These 3 Growth Funds Don’t Own Nvidia—and Their Returns Show It]( [These 3 Growth Funds Don’t Own Nvidia—and Their Returns Show It]( Offerings from Capital Group and Calvert are among the growth funds not riding Nvidia’s huge rally. Gabe Alpert [Stock Investors Have Already Won the Election]( [Stock Investors Have Already Won the Election]( No matter who is president, equities ride a favorable tide. John Rekenthaler [4 Reasons Why Today’s Stock Market Is Delivering Impressive Performance]( [4 Reasons Why Today’s Stock Market Is Delivering Impressive Performance]( Also, why the Federal Reserve’s interest-rate forecast seems too cautious. Sarah Hansen, Preston Caldwell, Ivanna Hampton [Tesla: Shareholder Vote Reduces Key Person Risk]( [Tesla: Shareholder Vote Reduces Key Person Risk]( We continue to view Tesla stock as slightly undervalued. Seth Goldstein [After Earnings, Is Nio Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Nio Stock a Buy, a Sell, or Fairly Valued?]( With weaker revenues and vehicle margins, here Morningstar’s outlook for Nio’s stock. Vincent Sun [After Earnings, Is CrowdStrike Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is CrowdStrike Stock a Buy, a Sell, or Fairly Valued?]( With strong execution but a stretched valuation, here’s Morningstar’s take on CrowdStrike stock. Malik Ahmed Khan [After Earnings, Is Lululemon Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Lululemon Stock a Buy, a Sell, or Fairly Valued?]( With flat Americas sales and strong growth in China, here’s our take on Lululemon’s stock. David Swartz [3 Funds That Are Getting Barbecued]( [3 Funds That Are Getting Barbecued]( These funds are missing the rally. Russel Kinnel [5 Undervalued Stocks to Buy as Their Stories Play Out]( [5 Undervalued Stocks to Buy as Their Stories Play Out]( Plus Morningstar’s updated economic forecasts. David Sekera, Susan Dziubinski [5 Renewable Energy Stocks With a High Yield]( [5 Renewable Energy Stocks With a High Yield]( These US stocks are focused on renewable energy and sport a nearly 5% dividend yield. Liz Angeles [Meme Stock Performance: Did Active or Passive ETFs Fare Better?]( [Meme Stock Performance: Did Active or Passive ETFs Fare Better?]( Active managers may be able to capitalize on meme stock mania, but that doesn’t mean they managed to do it. Lan Anh Tran [The 10 Best Dividend Stocks]( [The 10 Best Dividend Stocks]( These undervalued stocks with reliable dividends are worth considering. Susan Dziubinski [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( Retail sales, unemployment claims, and a market closure coming up. Leah Breakstone Chart of the Week [There’s No Bond King, but Investors Keep Pouring Money Into Pimco Income]( [There’s No Bond King, but Investors Keep Pouring Money Into Pimco Income]( The top-performing bond fund is taking in the lion’s share of multisector bond fund flows. Gabe Alpert [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Oracle: IaaS Signings More Than Make Up for Miss]( We’ve raised our fair value estimate for Oracle’s stock. Julie Bhusal Sharma [Apple: Generative AI Strategy Should Drive Sales and Upgrades]( We were pleased with the newly announced Apple Intelligence suite of features. William Kerwin [Nio: Revenue and Loss Largely In Line, but Vehicle Margin Missed Amid Price Competition]( We’ve lowered our fair value estimate for Nio’s stock. Vincent Sun [Adobe’s Strong Quarterly Results Drive Share Gains]( We’re raising our fair value for the software stock, which upped its full-year outlook. Dan Romanoff [Broadcom: AI Sales Growth Accelerates]( We are raising our fair value estimate for the chipmaker, which also unveiled a 10-for-1 stock split. William Kerwin [Morningstar Company Reports]( See More Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or plans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=55251) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602