Author Topic: Do We Fully Understand the Value of Cash?  (Read 1264 times)

bobbydigital

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Do We Fully Understand the Value of Cash?
« on: May 17, 2017, 08:54:28 AM »
I am a fan of the site portfolio charts. I know Tyler is a frequent contributor here, so I thought I'd post his latest article as a jumping off point for discussion.

https://portfoliocharts.com/2017/05/12/understanding-cash-will-make-you-a-better-and-happier-investor/

He makes the point that cash in and of itself is a great inflation hedge and that it doesn't get a fair shake as an asset.

This line was particularly compelling: "in Canada since 1970, the safe withdrawal rates for all retirement lengths up to 40 years with a 100% cash portfolio have been equal or superior to one with 100% stocks!"

Seems counterintuitive, but he's a convincing dude :)

Thoughts?

TheAnonOne

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Re: Do We Fully Understand the Value of Cash?
« Reply #1 on: May 17, 2017, 09:07:20 AM »
Obviously, Japan would have been a candidate for this as well. Growth is required for stocks to make sense.

Though, are YOU willing to bet that the age of growth is over? That this moment is time is the end?

I know I won't be making that bet.

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