SmartMoney's "Protect Your Money: Best Places for Cash" says, "Investors are sitting on a record amount of cash, only to wonder what the heck to do with it. The credit crisis shook the bond market right along with stocks, leaving cash as the most reliable place to seek short-term shelter. There's nearly $4 trillion in money-market funds, and bank deposits grew 11 percent last year, to almost $8 trillion, as savers bailed out of other investments. And cash isn't losing its cachet anytime soon: In response to the market meltdown and recession, the savings rate is expected to grow to more than 5 percent in 2009, higher than it has been in 15 years." It adds, "But the financial crisis has also made the calculus of cash more complicated than ever. The Federal Reserve has cut rates and kept them low, making it harder for investors to earn a decent return."
