The average interest rate on a 5-year CD has fallen below 1.0% for the first time in history.
Basically you will lend the bank your money for 5 years with an annual interest rate of 0.99%. Wow, now that sounds like one heck of a deal for the BANK. Yes the bank, not you!!
With rates so low it will likely lead to more cash going into stocks, corporate bonds, home improvements and maybe even a new home purchase.
If I had to choose investing in a 5-year CD or a quality diversified exchange-traded fund that invests in stocks the choice is a no-brainer - Stock ETF wins all day!!
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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