When a client is upset about money markets going up and down, what kind of caring answer helps them feel understood but also guides them to think clearly about next steps?

I understand that seeing money markets fluctuate, meaning their values or interest rates go up and down, can be unsettling. It's natural to feel concerned when investments show movement. A money market is a segment of the financial market where very short-term borrowing and lending takes place, typically involving highly liquid, low-risk debt instruments like Treasury bills or commercial paper. These funds are primarily used for capital preservation and liquidity, meaning protecting your initial investment and ensuring easy access to your money, rather than aggressive growth. The fluctuations you observe are a normal and expected characteristic, driven by broader economic conditions and central bank interest rate policies. For instance, when central banks raise interest rates to cool inflation, money market yields often increase. These movements are not usually a sign of fundamental risk to the principal in a money market fund, but rather a reflection of the current economic environment. To think clearly about next steps, let's refocus on your original financial objectives for these funds. Money markets are generally suited for short-term goals, such as an emergency fund or savings for an imminent purchase. It’s important to avoid making reactive decisions based solely on short-term market movements. Instead, let's review your specific needs and how the money market fund continues to align with your short-term liquidity requirements and overall financial plan.