Cash %While I am presently holding a bit of cash in my portfolio, its not my intention
but came as a result of the IPL attempted takeover bid. I am still in the process
of looking for a suitable place for that cash. As far as the overall market is
concerned, no one can predict when another crash might occur.
While many think holding cash is a good idea, it doesn't earn you anything and
the other question is, how long are you prepared to hold it earning nothing? 6
months, 1 yr, 2 yrs? What if there isn't another crash for a couple of years?
Despite how toppy things look, the system is awash with cash. Easy money is
fueling the markets and the Fed continues to back down every time after analyzing
the data. Debt levels are astonomical and inflation is creeping up. The Fed is damned is they do and damned if they don't.
The Fed would like to taper and raise rates but they simply can't with another
surge in the pandemic. At some point the data might give them an opportunity
but it won't be the big deal everyone thinks because the world economies are
so fragile and gov't debt levels are prohibitive. I'm staying fully invested and will
continue to rely on dividends to fuel my lifestyle.