Stocks vs cash: Equities are the better long-run bet, says strategist

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Here are 4 reasons to be wary of holding cash even as the stock market rally breaks down and bond yields surge

Investors are eager to allocate a larger portion of their long-term investment funds to cash and cash equivalents such as money markets, Treasury bills, and certificates of deposit, Doug Sandler, head of global strategy at Riverfront Investment Group, wrote in a note this week"Cash feels safe during a crisis, but there is a cost," he said.

"While actual returns typically vary year-to-year, large-caps have registered positive returns in 94% of the rolling 7-year time periods since that time," Sandler said. "If you are vigilantly watching your bank account to catch inflation, you will miss it," he said, in part as inflation"hides" by impacting investments about 2.5% annually over the last 30 years.

 

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Berkshire Hathaway sits on $109 billion in cash, is the most successful long term investor business in the world and here's you telling people it's foolish in a falling market to hold cash and cash like investments? 🤡

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