Here's Why an Investment 'Holy Grail' Doesn’t Exist

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United States 10-Year Notícia

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Market Overview Analysis by Lance Roberts covering: United States 10-Year. Read Lance Roberts's latest article on Investing.com

When it comes to the financial markets, investors have a litany of investment vehicles to choose from. The choices are nearly unlimited, from brokered certificates of deposit to complex derivative instruments.

In other words, no investment can provide all three factors simultaneously. While the table above uses only Equities, Bonds, and Cash, those three factors apply to any investment vehicle you may consider.No matter what investment vehicle you choose, you can only have two of the three components.Therefore, liquidity should always remain a high priority when managing your portfolio.

While the media chastises individuals for holding cash, it should be somewhat evident that without cash you can’t take advantage of opportunities.is a lack of cash to meet emergencies. Having a cash cushion allows for handling life’s “curve-balls,” without being forced to liquidate retirement plans.Layoffs, employment changes, etc. are economically driven and tend to occur with downturns that coincide with market losses. Having cash allows you to weather the storms.

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