Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton. Where should you invest in 2025?

Because the days of 5% returns on cash are so 2024.

Some cash like investments, like treasuries and CDs,

are maturing now when yields are lower.

Morningstar's 2025 outlook points to a path where investors

could find returns as interest rates fall.

I talked with Dominic Popolardo from Morning Star Investment Management,

the chief multi-asset strategists explain why it's time to think globally.

Great to have you here, Dom.

Great to be here with you, Evan, and thanks for having me.

Cash reigned as the top low-risk investment for a while, but that has now ended.

How should investors think of this new phase?

Yeah, no doubt cash was king for quite some time and it made a lot of sense for investors

to hold outsized positions in cash allocations.

It was yielding over 5% for quite a while and literally no risk of losing

money on that investment.

Unfortunately, that environment has come and gone, though, and yield on cash investments

was unusually attractive because the U.S. Treasury yield curve was inverted, meaning that

yields on the shorter term maturities were higher than yields on the longer term maturities.

And it's uncharacteristic for it to have that dynamic and that has begun to reverse.

Cash yields are currently down to about 4.3 to 4.4%.

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