'Dead money': 3 financial advisors reveal where they're parking cash as inflation hits a 3-year high

Inflation has risen to about 3.8% year‑over‑year (April 2026), eroding purchasing power and prompting financial advisors to reposition cash away from low‑yield bank accounts. Advisors in the coverage say they’re moving cash into short‑duration Treasuries, I‑bonds, T‑bills, CDs and money‑market alternatives, while some allocate modest amounts to gold and, in a few cases, Bitcoin as inflation hedges. The story highlights the opportunity cost of holding “dead money” (average savings rates near 0.38%) versus staying invested (SPY returned ~175.5% over a recent seven‑year window). Market implications include greater demand for short‑term government paper and inflation‑linked products, potential pressure on risk assets if inflation stays sticky, and continued interest in real assets (gold/XAUUSD) as a portfolio diversifier.