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

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 21 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 51%

Malaysia News News

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

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? 🤡

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market analysis: Why a strong economy is bad news for equitiesWhy the resilient US economy is making it difficult for stock investors to thrive Someone explain why these types of investors are a good thing? It's so weird to read a piece saying that the economic recovery is a really bad thing for some. Seems really gross, frankly, to have a position that makes tons of money when everything is on fire for everyone else.
Source: BusinessInsider - 🏆 729. / 51 Read more »

All 30 Dow stocks are falling, led by Boeing, Salesforce and DisneyShares of all 30 components of the Dow Jones Industrial Average are trading lower in Friday’s premarket, as Dow futures took a hit after strong consumer...
Source: MarketWatch - 🏆 3. / 97 Read more »

Stocks limp toward biggest weekly fall of the year By Reuters*GLOBAL STOCKS LIMP TOWARD BIGGEST WEEKLY FALL OF THE YEAR AS RATE HIKE BETS ACCELERATE - Omg evry day data coming ppi pci ppp fkekbe djdidi rifofjeo djdidu Wtffff stopppp should've bought bitcoin noobs Very good! I’ve been waiting for the opportunity to jump in some good positions
Source: Investingcom - 🏆 450. / 53 Read more »

U.S. stocks open sharply lower after hotter-than-expected inflation readingU.S. stocks opened sharply lower Friday after hotter-than-expected inflation data from the Federal Reserve’s preferred gauge. The Dow Jones Industrial Average was down 1.2% soon after the opening bell:
Source: MarketWatch - 🏆 3. / 97 Read more »

Real estates services stocks slump as 10-year yield climbs to multi-month highsShares of real estate services companies dropped Friday, despite better-than-expected new home sales data, as the strong data sent 10-year Treasury yields to...
Source: MarketWatch - 🏆 3. / 97 Read more »