Investors are shifting money from high-performing equities to fixed-income products like bonds. Financial planners and DIY investors are rebalancing portfolios after strong stock returns, not out of panic but to stick to targets. The stock market’s stellar performance has left many portfolios overweight in equities, prompting a flow of $90 billion out of large-growth equities into money market funds and ultrashort bond strategies.

Vanguard data shows $90 billion exiting large-growth equities and $600 billion entering money market funds in the past year. Investors are demonstrating good behavior by selling hot assets and buying what’s not. President Trump’s nomination of a new Federal Reserve chair has created uncertainty, but experts advise not to panic as positive fixed income trends from 2025 are expected to continue.

The Federal Reserve held rates steady last week amidst political uncertainty. Investors are advised to tune out the noise and focus on market realities. Subscribe to The Daily Upside for financial advisor news, market insights, and practice management essentials.

Read more at Yahoo Finance: Investors Trade in Stocks for Bonds After Big Gains in 2025