Cash pays less
Investors often think of cash as a safe haven during volatile times, or even as a source of income. But the ongoing era of ultra-low interest rates has depressed the yields on most cash instruments—well below the rate of inflation. With rates expected to rise slowly as the Federal Reserve gradually normalizes monetary policy, investors should be sure an allocation to cash does not undermine their long-term investment objectives.
There is a lot of it
More than $15 trillion of cash – greater than total consumer spending in the U.S. and mortgage debt – still sits on the "sidelines," earning next to nothing and largely missing out on a truly historic bull market.
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USE EVERY ASSET CLASS TO YOUR ADVANTAGE
We offer investment strategies covering all asset classes for diversification and risk management to help you and your clients build stronger portfolios.
Diversification does not guarantee investment returns and does not eliminate the risk of loss. Diversification among investment options and asset classes may help to reduce overall volatility.