Principle #2: Cash Isn't Always King - J.P. Morgan Asset Management
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PRINCIPLE #2: CASH ISN'T ALWAYS KING

WITH TODAY'S ULTRA-LOW INTEREST RATES, CASH PAYS LESS

When cash pays you virtually nothing, it's best to invest in something. See how we are working to solve the income challenge.

SOLVE THE INCOME CHALLENGE

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 to near-zero -- 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 $12 trillion of cash -- roughly two-thirds the size of the U.S. GDP -- still sits on the "sidelines," earning next to nothing and largely missing out on a truly historic bull market.

 

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