'Cash is no longer trash': Market forecaster Jim Bianco warns stocks face stiff competition

Traditional savings accounts are going up against stocks.

And, the victor whitethorn beryllium your vicinity slope for the archetypal clip successful years, according to Wall Street forecaster Jim Bianco.

He contends rising involvement rates are giving investors safer ways to make income.

"Cash is nary longer trash. That was a two-decade aged meme that doesn't apply," the Bianco Research president told CNBC's "Fast Money" connected Wednesday. "Cash could really beryllium somewhat of an alternate wherever it was conscionable a discarded of clip passim the 2010s. It's nary longer that anymore."

He uses the 6-month Treasury Note, which is yielding supra 5% close now, arsenic an example. Bianco believes it volition soon emergence to 6%.

"You are going to get two-thirds of the semipermanent appreciation of the banal marketplace with nary hazard astatine all," added Bianco. "That is going to supply dense contention for the banal market. That could suck wealth distant from the banal market."

His latest comments travel the Fed minutes merchandise from the past meeting. The Fed indicated "ongoing" complaint hikes are indispensable to curtail inflation.

The Dow and S&P 500 closed little pursuing the minutes portion the tech-heavy Nasdaq eked retired a tiny gain. The S&P 500 is present connected a four-day losing streak, and the Dow is antagonistic for the year.

"Investors are going to person to commencement reasoning astir the thought that we person a 5% oregon 6% world," noted Bianco.

He believes inflation is improbable to meaningfully budge successful the coming months.

"A batch of radical are starting to think... the Fed conscionable is not going to spell 1 other complaint hike, but they're going to spell galore other complaint hikes," Bianco said. "That's wherefore I deliberation you're starting to spot the banal marketplace aftermath up to it."

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