Quoted from Barron’s:
Bonds have performed adequately this year. The Bloomberg US Aggregate Bond Index returned 3.1% through March 22, compared with 3% for the S&P 500SPX +0.56% , but it’s worth considering at least a partial allocation to cash.
Investors should “be more heavily weighted on the short end [of the curve], versus just buying some type of fixed-income fund,” says Dan Genter, CEO of Genter Capital Management. One option he’s using: short-term floating Treasuries that mature in July and October, both yielding around 4.9%.