Hiding out from market volatility in 'near cash' can be rewarding - BNN Bloomberg

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 50%

Россия Новости Новости

Россия Последние новости,Россия Последние новости

You can’t blame any investor for re-evaluating their tolerance for risk after Tuesday’s gut-wrenching stock market selloff, when the S&P 500 and tech-heavy Nasdaq sank the most since June 2020.

As central banks aggressively tighten monetary policy to tame inflation , these are uncertain times for those who count on the markets to grow their retirement savings.

“It’s not a market where there’s an obvious trade or there’s an obvious thing to do and sometimes that just happens, and it’s best to sit on the sidelines,” he said.There are several terms for cash-like instruments; near money, quasi-money, cash equivalents, arm’s length cash, or near cash. Near cash, along with other fixed-income investments, has an amazing way of stemming equity losses and preserving the worth of a broader portfolio.

The next nearest cash is probably a high-interest savings account. You’ll need to shop around but some financial institutions are posting three per cent annually — assuming certain conditions, such as minimum deposit amounts, are met. Past returns for money market funds have been dismal, but can be expected to rise with interest rates.Generally, yields gets higher as the term to maturity lengthens. If you have more time to spare, some one-year guaranteed investment certificates have reached 4.5 per cent.

 

Спасибо за ваш комментарий. Ваш комментарий будет опубликован после проверки

In a high inflation environment, getting out of the market is the best way to ensure paper loses become real. As Warren Buffet always says, “Don’t be such a wimp.”

Мы обобщили эту новость, чтобы вы могли ее быстро прочитать.Если новость вам интересна, вы можете прочитать полный текст здесь Прочитайте больше:

 /  🏆 83. in RU

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

TD to name Cowen leaders as co-heads of markets, investment bank - BNN BloombergToronto-Dominion Bank plans to name executives from Cowen co-heads of its global-markets and investment-banking businesses, pairing them up with current company leaders, when it acquires the American firm next year. $HUGE
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »

BMO Capital Markets is cutting jobs after downturn in business - BNN BloombergBank of Montreal’s capital-markets division is cutting jobs across its businesses and locations in response to weakening market conditions, according to people familiar with the matter. That's going to cause further selling in homes as all those laid out will sell. Massive profits but gotta cut jobs… Just like Goldman, you called it Jimmy Chill jimcramer
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »

Ray Dalio does the math: Rates at 4.5% would sink stocks by 20% - BNN BloombergRay Dalio came out with a gloomy prediction for stocks and the economy after a hotter-than-expected inflation print rattled financial markets around the globe this week.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »

FedEx tumbles after pulling annual earnings forecast - BNN BloombergFedEx withdrew its annual earnings forecast and said preliminary results for the latest quarter fell short of expectations, sending shares of the package-delivery giant tumbling and stoking fears that economic conditions are worsening. Get ready for a big sell off tomorrow The consumer is fine Market red! Thanks FedEx🤬
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »