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Cash isn't always king
Cash rarely outperforms
In the short term, having a little extra cash can be beneficial if you need to allocate quickly to new opportunities. However, cash is rarely king when it comes to generating long-term returns.
Central banks underwent the fastest rate hiking cycle in years in 2022 and 2023, helping cash returns, but cash has historically outperformed other fixed income assets only rarely. Now with rates easing, other assets are looking more attractive compared to cash.