Skip to content

Fed Finally Vanquishes Stocks From Asset Allocation Throne

  • Equities among least attractive assets amid Fed tightening
  • Money markets, short-dated bonds offer low risk returns

For years, asset allocators had it easy: Buy the biggest American tech companies and watch the returns rack up. 

Those days are gone, buried under a crush of central bank rate hikes that are rewriting the play books for investment managers across Wall Street. TINA -- the mantra that investors had no alternatives stocks -- has given way to a panoply of actual choices. From money market funds to short-dated bonds and floating-rate notes, investors are now locking in low-risk returns that, in some cases, exceed 4%.