We sold commodities-based fund and exchanged into a high yield money market fund. WHY? Commodities are generally used as an inflation hedge in portfolios, especially in times where fixed income alternatives offers limited yield and stability as had been the case for the past decade or so. However, with interest rates forecasted to decline over the next several years and yields that have risen into the 4% and higher range for most high-quality fixed income options it is a more attractive environment for traditional fixed income.

We exchanged lower yielding money market funds for higher yielding money market funds. WHY? Simply put, we now have access to a wider array of high yielding money market funds. Naturally, we wanted to take advantage of that in order to maximize your money market holdings.